1. Marks Private Limited is a growing organization in the industry and is showing progress in terms of capturing new markets in the industry. It has recently introduced a 5 year bond to arrange capital for entering into a new business. The coupon rate announced by the organization is 8% compounded annually with $1000 as a face value and 10% as yield to maturity. Calculate the

a. Present Value of the bond [2 marks]

b. Current yield associated with the bond [2 marks]

c. Also comment that how the present value of the bond will be affected if the yield to maturity will become same as a coupon rate.