Question: Problem 1 A five year, 8% bond paying semiannual interests with a Tk.1,000 par value was purchased last year at Tk.980 a. What is the

Problem 1 A five year, 8% bond paying semiannual interests with

Problem 1 A five year, 8% bond paying semiannual interests with a Tk.1,000 par value was purchased last year at Tk.980 a. What is the current yield on the bond? (1 point) b. What is the yield to maturity on the bond using the interpolation formula? (6 points) c. What is the approximate y eld on the bond? (2 points) d. What is the basis point difference between the yields calculated in part b. and part c.? (1 point) e. What is the annualised yield to maturity on the bond? (2 points)

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