Question: QUESTION FIVE (10 MARKS) Bentop bond which has 7.85% coupon rate has the remaining 5 years to mature, valued at par $1,000. It is callable

QUESTION FIVE (10 MARKS) Bentop bond which has 7.85% coupon rate

QUESTION FIVE (10 MARKS) Bentop bond which has 7.85% coupon rate has the remaining 5 years to mature, valued at par $1,000. It is callable and is currently selling at $956.40. Based on this information, a) Calculate its current yield. (3 marks) b) Predict its total year to maturity using semi-annual compounding if yield to maturity is 8.80%. (4 marks) c) Judge the status of Shariah compliance for this bond. (3 marks) QUESTION FIVE (10 MARKS) Bentop bond which has 7.85% coupon rate has the remaining 5 years to mature, valued at par $1,000. It is callable and is currently selling at $956.40. Based on this information, a) Calculate its current yield. (3 marks) b) Predict its total year to maturity using semi-annual compounding if yield to maturity is 8.80%. (4 marks) c) Judge the status of Shariah compliance for this bond

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