The Omani Company has two bond issues outstanding. Both bonds pay OMR (1000) annual interest...
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The Omani Company has two bond issues outstanding. Both bonds pay OMR (1000) annual interest plus OMR (10000) face value at maturity. Bond L has a maturity of 20 years, sell after three years issued, and Bond S has a maturity of 1 year.
What will be the value of each of these bonds when the going rate of market interest is 12%?
what can you conclude from the results of the above questions regarding the bond risks?
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