Assume that a corporation issues 1 year bond at 5 rate with the-00144
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vu bt301 Introduction to Biotechnology.
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vu bt301 Mid Term Solved Past Paper No. 2.
Question 1: Assume that a corporation issues 1 year bond at 5% rate with the face value of Rs.100.If there is no risk of default then find out the price of this bond.
=100(1+0.05)*1
=100(1.05)*1
= 100(1.05)
Price of bound = 105 Answer
Answer:
Price of bound = p (1+r)*1=100(1+0.05)*1
=100(1.05)*1
= 100(1.05)
Price of bound = 105 Answer