Question: SECTION B: ANSWER THE FOLLOWING QUESTIONS SHOWING YOUR CALCULATION CLEARLY 14 MARKS] 3. What is the value of the following quarterly bond? Face value $1,000

SECTION B: ANSWER THE FOLLOWING QUESTIONS SHOWING YOUR CALCULATION CLEARLY 14 MARKS] 3. What is the value of the following quarterly bond? Face value $1,000 Maturity 20 years Coupon rate 10% Discount rate 8% 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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