There are 10 years, 200 face value debentures having 9% coupon rate available in the market at
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There are 10 years, ₹200 face value debentures having 9% coupon rate available in the market at a price of ₹189 per debenture. These have a provision for redemption at 5% premium. If an investor expects 10% return on his/her investment then suggest him/her if he/she should buy it or not.
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Here the investor will receive 18 per debenture every year for ten years a...View the full answer
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