Question: Please help question 5,6 and 7 this is number 4 through 7 (5) What is the yield to call (YTC or HPY) of the bond
(5) What is the yield to call (YTC or HPY) of the bond described in part (4) if the bond can be called after 3 years at a premium of Tshs 6,000? (6) What is the difference between interest rate risk and reinvestment risk? (7) What are yield curves and their 4 uses? (5 marks@7 = 35 marks] (4) What is approximate YTM of a 6-year, Tshs 100,000 par value bond with a 10% annual coupon, if it sells for Tshs 116,000? (5) What is the yield to call (YTC or HPY) of the bond described in part (4) if the bond can be called after 3 years at a premium of Tshs 6,000? (6) What is the difference between interest rate risk and reinvestment risk? (7) What are yield curves and their 4 uses? (5 marks@7 - 35 marks)
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