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How to find present value of bond
#1
The face value of bond is rs. 1000, coupon rate is 11 per cent , years to maturity is 7 years. the required rate of return is 13 per cent and find  the present value of the bond .

110 * PVIFA ( 13 percent  , 7 ) + 1000 (PVIF 13 per cent , 7 )

here,  PVIFA ( 13 percent  , 7 )  and  (PVIF 13 per cent , 7 )   values will be given in exam.

 PVIFA ( 13 percent  , 7 ) =  4.423 ,  (PVIF 13 per cent , 7 ) = 0 .425

then 110 * 4.423 + 1000 ( 0.425) 

= 911.53 ans


this type of  question comes in  2 marks.
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