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3. An investor is considering the purchase of a bond currently selling for Rs. 878.50. The bond has four years to maturity, a face value

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3. An investor is considering the purchase of a bond currently selling for Rs. 878.50. The bond has four years to maturity, a face value of Rs. 1000 and a coupon rate of 8 per cent. The appropriate discount rate for investments of similar risk is 10 per cent. Calculate the yield to Page:2 dy 96 PORTFOLIO MANAGEMENT P page maturity of the bond. Based on the calculation, should the investy ranntly nurchased a bond with Rs. 100 purchase the bond

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