Bond analysis

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3 Points Posted on 07 March 2020
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.?
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On 07 March 2020 at 14:02 Report
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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.

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609 Points Posted on 07 March 2020
Fair value of bond is 846.26. The stock is overvalued hence no purchase
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On 07 March 2020 at 14:13
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3 Points Posted on 07 March 2020
I have no idea how to calculate ? Will you be able to show all process
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On 07 March 2020 at 16:29

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