The market price of an Rs1, 000 par value bond carries a coupon rate of 14 percent

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Question:

The market price of an Rs1, 000 par value bond carries a coupon rate of 14 percent and maturing after 5 years is Rs 1050. The redemption value is Rs 1,000. Calculate the yield to maturity on this bond. (b) What is the approximate yield to maturity? (c) What will be the realized yield to maturity if the reinvestment rate is 12%? (d) Calculate the Duration and Volatility of the bond.