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Calculate the present discounted value

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Calculate the present discounted value (PDV) for a 5 years bond with RM60,000 initial payment and yearly payment stream of RM3,500. At the end of the stream only 2/3 of the initial payment is returned. The interest rate is expected to be around 10 percent and the risk free rate is about 6 percent while the estimated asset beta is 0.3. Calculate and explain whether the investment for the bond is a profitable investment?

Reference no: EM132788310

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