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Determine the market value of the bonds

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Question - Bonds of Cemerlang Corporation have a par value of RM1,000. The bonds are paying annual coupon of 8% and will mature in 10 years. Based on the above information, you are required to:

a. Determine the market value of the bonds if the required return is 6.

b. Explain the relationship between coupon rate, required rate of return, market value and the par value of the bonds.

Reference no: EM133172687

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