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The annuity table offers that it basis once the step three,791

The annuity table offers that it basis once the step three,791

The worth of an excellent debenture are for this reason equal to today’s worth of the fresh annual appeal payments together with establish worth of prominent payable in the course of readiness.

A debenture of Rs. a hundred, influence mortgage loan off fifteen % often mature to own repayment just after 5 years, The desired speed away from go back about this debenture was ten% assess the modern worth of brand new debenture.

Solution: So you’re able to calculate the present day worth of new debenture it might possibly be needed to find out the following a couple of dismiss activities.