Question: SECTION A: PLEASE ANSWER THE FOLLWING QUESTIONS [ 6 MARKS] 1. Explain the following concepts of value: (a) liquidation value (b) book value (c) going

SECTION A: PLEASE ANSWER THE FOLLWING QUESTIONS [ 6 MARKS] 1. Explain the following concepts of value: (a) liquidation value (b) book value (c) going con value. [3 marks 2. What is a Bond? What is a perpetual bond? What is a zero coupon bond? [3 marks] SECTION B: ANSWER THE FOLLOWING QUESTIONS SHOWING YOUR CALCULATION CLEARLY 14 MARKS] 3. What is the value of the following quarterly bond? [4 marks Face value $1,000 Maturity 20 years Coupon rate 10% Discount rate 8% [4 marks) 4. What is the value of the following semi-annual bond? Face value $1,000 Maturity 12 years 12% Coupon rate Discount rate 12%

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