Suppose a company has issued deep discount bands which has
face value of INR 200000 maturing after 25 years.the bondes
was issued at INR 5300.whar is the effective interest rate
earned by the investor from this bond?
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Answer / shiks
200000=5300*(PVIF)r%,25 years
200000=5300/(1+r)^25
r=((200000/5300)^.04)-1
r=15.63%
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / ankit
these bonds are issued by IDBI bank but now no longer valid
| Is This Answer Correct ? | 0 Yes | 0 No |
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