NUMERICAL PROBLEMS
  1. What will be the market value of an 8%, Rs 1,000 par value bond with annual interest payment, where the required rate of return is 15%?
  2. A company has a perpetual bond paying Rs 150 as annual interest. The current yield on this type of bond in the market is 13%. What would be the price of the bond?
  3. Find out the yield of a 16%, Rs 1000 perpetual bond when the current price is Rs 1000.
  4. A 3-year bond paying Rs 500 as interest p.a. has a maturity value of Rs 10,000. Find its value at the time of issue at a discount of 5%.
  5. A Rs 1000 bond with 10-year maturity and a coupon rate of 8% has a yield to maturity of 9%. Find out the current market price of the bond.
  6. A Rs 1000 bond with 10-year maturity and a coupon rate of 8% is selling ...

Get Fundamentals of Financial Management, Third Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.