Question: compute for required V Chu only QUESTION 2: 130 marks) (This Question is Conipulsory) (a) ABC Investment Bank is planning to issue both 4-year coupon

compute for required

V Chu only QUESTION 2: 130 marks) (This Question is Conipulsory) (a) ABC Investment Bank is planning to issue both 4-year coupon bond and zero- coupon bond each with a par value of Tshs 10 million. The former bord has a coupon vale of 12%. . Required: GO) Do the duration analysis of the proposed coupon bond and zero-coupon bond issuesnirehe required rate of retum on these bonds is 10%. [10 marks 1) Whaiphervations and condusions uo you make from your analysis? (4 marks)

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