Similarities between a bond and an annuity

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A bond is issue on 18/06/2019 having face value of Rs. 1,500. The coupon is paid quarterly on 18/09, 18/12, 18/03 and 18/06 each year at the rate of 8% quarterly. The bond will expire on 18/06/2039. What should be the value of the bond if the market rate is 15% quarterly? Discuss similarities between a bond and an annuity.

Reference no: EM132546529

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