10% government of india bonds ( annual interest payment) have five years to maturity and a maturity value of ? 10000. Ascertain the value of the bond today if the desired yields on such bonds are 8%, 10% and 12%. Assuming the desired is 8%, and presently the bond is traded at ? 11500, what would you do?

Answer rating: 100% (QA)

To ascertain the value of the bond today at different desired yields we can use the present value fo... View the full answer