6) What would be the current market value of a risk free bond with a face...

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6) What would be the current market value of a risk free bond with a face value of £100 which pays a coupon of 10% and which

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PINOO Answer: un Given that Face Value: Eloo Risk free bond coupon = 10.1 n = 4 years redemption value - Ello Rate of return PgNo @ Coupon = 100 X10-11 -10 pv = (1.125 =06355 RV: Redeemable value = llo Bond price =( 10x 303735)+(110 x0.6355) - 301373

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