Question: please make sure you answer each and every part. I will upvote Ques3. (a) A Coupon Bond maturing in one year has a face value

 please make sure you answer each and every part. I will

please make sure you answer each and every part. I will upvote

Ques3. (a) A Coupon Bond maturing in one year has a face value of Rs.1000 and coupon rate of 8%. If the market interest rate is 6% at the time of purchase, calculate: i. Price of the coupon bond ii. Current yield iii. Yield to maturity of this bond What effect would a rise in the market rate of interest to 8% have on its price and yield? (12)

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