Bond analysis

IPCC 173 views 2 replies
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)
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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