4. a. A perpetual bond has Tk. 1,200 face value and provides a 10.5% coupon. If the market price of the bond is Tk. 1,050, what is its yield to maturity? 03 b. A zero-coupon, Tk. 1000 face-value bond...


4. a. A perpetual bond has Tk. 1,200 face value and provides a 10.5% coupon. If the
market price of the bond is Tk. 1,050, what is its yield to maturity? 03
b. A zero-coupon, Tk. 1000 face-value bond is currently selling for Tk. 208 and
matures in exactly 10 years. What is the required rate of return on this bond? 04
c. ABC Company has outstanding, an 10 percent, four year, Tk. 1,000 par value
bond on which interest is paid monthly. If the market rate of return is 15 percent,
what is the intrinsic value of the bond?



Jun 04, 2022
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