Fmi 6 432

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Q2 Price of a bond

a. YTM = 7 percent b. YTM = 9 percent c. YTM = 5 percent


Par value 1,000 1000 1000
YTM 7% 9% 5%
Time to maturity 20 20 20
Coupon rate 7% 7% 7%

Price of bond (PV) ₹ 533.39 ₹ 408.35 ₹ 742.61

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