Debentures of face value 100 each having a coupon rate 10% p.a. have a provision for interest

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Debentures of face value ₹100 each having a coupon rate 10% p.a. have a provision for interest payment every year on September 30 and March 31. The following were the market prices:

(i) On July 1, ex-interest ₹99 per debenture 

(ii) On February 1, cum-interest 99.50 per debenture If 100 debentures are purchased on both of these dates, then calculate effective purchase price and accrued interest.

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Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

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