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    Bond valuation

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    A bond which has 2 years to maturity has a coupon of 5% and a face value of $100,000. Where coupons are paid semi-annually and the investors required return is 6%pa. What will be the IN value of this bond for investors?

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    Solution Preview

    The IN value of the bond to the investors would be the present value of interest and principal amount discounted at the required return.
    The ...

    Solution Summary

    The solution explains how to determine the value of a bond.