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4. a) Define book value and replacement value. What is the difference between them? (2) b) The government is proposing to sell a 5-year bond

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4. a) Define book value and replacement value. What is the difference between them? (2) b) The government is proposing to sell a 5-year bond of tk 1,000 at 8 per cent rate of interest per annum. The bond amount will be amortized (repaid) equally over its life. If an investor has a minimum required rate of return of 8 per cent, what is the bond's present value for him

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