A company issues a 5% Rs 1,00,000 bond with a 3–year maturity. The investors’ required rate of return is 8%. Find the investors’ intrinsic value of the bond if: (a) interest is paid annually and (b)...

A company issues a 5% Rs 1,00,000 bond with a 3–year maturity. The investors’ required rate of return is 8%. Find the investors’ intrinsic value of the bond if: (a) interest is paid annually and (b) interest is paid half-yearly.

If a perpetual bond has a coupon rate of 5% and the interest payment amounts to Rs 50 annually, find the value of the bond.