Suppose a company has issued deep discount bands which has face value of INR 2

Suppose a company has issued deep discount bands which has
face value of INR 200000 maturing after 25 years.the bondes
was issued at INR 5300.whar is the effective interest rate
earned by the investor from this bond?

Question Posted / pragna.jadeja

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Suppose a company has issued deep discount bands which has face value of INR 200000 maturing after..

Answer / shiks

200000=5300*(PVIF)r%,25 years
200000=5300/(1+r)^25
r=((200000/5300)^.04)-1
r=15.63%

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Suppose a company has issued deep discount bands which has face value of INR 200000 maturing after..

Answer / ankit

these bonds are issued by IDBI bank but now no longer valid

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