Question: I need the answer as soon as possible M/s Agfa Industries is planning to issue a debenture series on the following terms: Face value 100

I need the answer as soon as possible

M/s Agfa Industries is planning to issue a debenture series on the following terms: Face value 100 Term of maturity Yearly coupon rate Years 10 years 1-4 9% 5-8 10% 9 - 10 14% The current market rate on similar debentures is 15 per cent per annum. The Company proposes to price the issue in such a manner that it can yield 16 per cent compounded rate of return to the investors. The Company also proposes to redeem the debentures at 5 per cent premium on maturity. Determine the issue price of the debentures

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