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3. a. Sunil is valuating 2 investment proposals: i) Invest Rs. 3 lacs for 5 years earn an interest of 8% compounded quarterly. ii) Investment
3. a. Sunil is valuating 2 investment proposals: i) Invest Rs. 3 lacs for 5 years earn an interest of 8% compounded quarterly. ii) Investment of Rs. 20,000 per year for 5 years @10\% compounded quarterly. Which option should he go for and why? (5 Marks) 3.b. Sanjana has a debenture of Par-value Rs.100/-@6\%. Calculate its current yield if: (5 Marks) i) Market Price is Rs. 98.20 ii) Market Price is Rs. 102.00 What inference can you draw from this about the relation between Market price and yield
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