Calculate market or intrinsic price of bond

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Mr. Shahid Iqbal issued most recently (1st January 2012) 9% bond payable in 5 Year with Annual Interest Payment on 1st January Every year. Par Value of Bond is Rs. 100,000 and Market or Competitors have issued similar risky bond on 8% interest rate per annum.

Required:

Problem 1: Calculate Market or Intrinsic Price of Bond.

Reference no: EM132809915

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