1. a) A bond of Rs1000 @ 10% is selling for Rs 900, calculate the yield of Bond. Would you advise to purchase this bond?

b) Mr. Dhansu Singh made an investment in 12% bonds, face value of Rs. 100 maturity period is 5 years. The opportunity cost rate is 12%. Bonds will be realised after at a premium of Rs 20/ per bond. Compute the intrinsic value of this bond. Would you prefer to purchase this bond at Rs. 115/ ?

2. From the following information calculate present value of equity share of Gabbar Ltd.

Face Value Rs. 100

Dividend Rs 12

Expected rate of share after one year Rs 130 Rate of Return 10%

3. From the following information compute value of equity share of Sonakshi Ltd. using CAPM

Face Value Rs.20

Dividend Paid Rs. 5 per share

Beta 1.3

Market index 15%

Growth Rate of Company 5%