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5. Calculate the following and briefly justify your answers in the following scenarios? (Answer page 9 for explanation, font size 10) (6 Marks) 1. The

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5. Calculate the following and briefly justify your answers in the following scenarios? (Answer page 9 for explanation, font size 10) (6 Marks) 1. The KLM airline company issued bond has a 8% coupon rate (with interest paid semi- annually), a maturity value of $1,000, and matures in 5 years. If the bond is priced to yield 6% and 8% (calculate with both percentage), what is the value of the bond's and asset at time zero (current price)? You have to decide to invest in this bond at 6% or 8% and why you do so? 2. Mr. Ahmed bought 2 flats for $ 293000 and 393000. He put 20% down payment in both flat and obtained a simple interest amortize loan for the balance at 5% annually interest for 3 years (factor 2.7232) flat-1 and 5 years (factor 4.3295) for flat-2. Prepare separate amortization table for both flat payments? justify which flat payment is most suitable for you if your present annual income is $90,000

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