It is written in studymaterial issued by institute page 15 chapter 8-
Redemption : one shot repayment of principle at par or premium
Query - can bonds be redeemed at discount?
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SFM - valuation of debentures and bonds
Replies (1)
As far as my understanding goes the answer is NO.
Why will people invest in bonds of company that will be redeemed at discount (Loss).
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