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X ltd . sold Rs 1 0 0 0 , 1 2 % perpetual debenture 1 0 years ago. Interest rate haven risen since then

X ltd

.

sold Rs

1000, 12 %

perpetual debenture

10

years ago. Interest rate haven risen since then so that debentures of X ltd currently selling at

15 % .

Compute

1 .

Market price of debenture.

2 .

If debentures have

8

years of maturity and currently selling at Rs

825 (

assumed

),

compute Yield to Maturity.

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