Bond analysis

Face value =Rs.1000
Coupon Rate =8 %
Maturity Period =15 yrs
Mkt Interest rate =10 %
Compounding =semi annually
Find fair value of bond. Will you purchase the bond if the price is 900.?
Replies (2)
Quick Summary
This discussion explains how to determine the fair value of a bond using its face value, coupon rate, maturity period, market interest rate, and semi-annual compounding. It calculates the fair value to be Rs. 846.26 and advises against purchasing the bond at Rs. 900, as it is considered overvalued.

Fair value of bond is 846.26. The stock is overvalued hence no purchase
I have no idea how to calculate ? Will you be able to show all process

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