Question: 3. a. A perpetual bond has Tk. 1,200 face value and provides (1+last digit of your ID)% coupon. If the market price of the bond

3. a. A perpetual bond has Tk. 1,200 face value and provides (1+last digit of your ID)% coupon. If the market price of the bond is Tk. 1,050, what is its annual yield of the bond? [03]

b. A zero-coupon, Tk. 1000 face-value bond is currently selling for Tk. 208 and matures in exactly 10 years. What is the semiannual yield on this bond? [04]

c. ABC Company has outstanding, an 10 percent, four year, Tk. 1,000 par value bond on which interest is paid monthly. If the market rate of return is (5+last digit of your ID)% percent, what is the intrinsic value of the bond?

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