A Company has sold Rs.1,000, 12% perpetual debentures 10 years ago. Interest rates have risen since then, so that debentures of this company are now
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Question

<br/> -A Company has sold Rs.1,000, 12% perpetual debentures 10 years

ago. Interest rates have risen since then, so that debentures of this company are now selling at 15% yield basis.

Determine the current indicated/ expected market price of the debentures. Would you like to buy the debentures for Rs.700? 



-A Deep Discount Bond was issued by financial institution for a maturityperiod of 10 years and having a par value of Rs.25000. Find out the value of the Bond if the
required rate of return is 16%.

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