Question: Basic Valuation: Brown Ltd has issued a bond with a face value of R1000. This is a three-year bond that pays a coupon of 6.10%.

Basic Valuation:

Brown Ltd has issued a bond with a face value of R1000. This is a three-year bond that pays a coupon of 6.10%. Coupon payments are made semi-annually. Given the market rate of interest of 5.80%, what is the market value of the bond?

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