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Bonds

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21 June 2012 Q ltd willing to pay Rs.1105 for a bond with Rs.1000 face value after a maturity period of 20 years. what happens if you pay more for the bond? what happens if you pay less for the bond?
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Vivek Raju P

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Vivek Raju P (Expert)
21 June 2012 If you pay more for the bond your yield (YTM) will be less and the converse in the opposite case.

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