a) kwendakwema hydraulic LTD has an out standing 14% coupon bond with 3 years to maturity. Interest payments are made semi annually .If the bond had a face value of k100 and a market price of k104, what is the yield to maturity ?

b) On a contract , you have a choice of receiving k 25,000 six years from now or k51,000 twelve years hence. At what rate of interest would you be indifferent between the two amounts ?