Question: 4. a) Define book value and replacement value. What is the difference between them? (2) b) The government is proposing to sell a 5-year bond

4. a) Define book value and replacement value. What is the

4. a) Define book value and replacement value. What is the difference between them? (2) b) The government is proposing to sell a 5-year bond of tk 1,000 at 8 per cent rate of interest per annum. The bond amount will be amortized (repaid) equally over its life. If an investor has a minimum required rate of return of 8 per cent, what is the bond's present value for him

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