How much should you pay for the bond, Finance Basics

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How much should you pay for the bond

Problem

Your friend recommends that you invest in a six-year bond issued by Lav-X Ltd that will pay quarterly coupons of 6 per cent. Similar investments today will yield 10 per cent p.a. compounded quarterly. How much should you pay for the bond if face value is 1000?

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Finance Basics: How much should you pay for the bond

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