Q. 1: (a) What is the difference between zero and non-zero-coupon bonds. Justify your answer with hypothetical examples. (b) The face value of the bond is Rs. 50,000/- issued for eight years with a coupon rate of 6.5%. Calculate the price of the bond if market yield remains the same, if yield goes up by 7% and if yield decreases to 5.5%. What is the relationship between yield and price of the bond, explain it graphically? (c) You buy a share today at Rs. 100/-, and after a year its price jumps to Rs. 108/-. The current yield of the bond is 15%, calculate the dividend and dividend yield of the share. What is the difference between capital gain and dividend yield? (d) What is the difference between compounding and discounting? Illustrate them through hypothetical examples