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(a) What is the yield to maturity of a bond that has 5 years left to maturity, has 12.5 percent coupon and a face value

(a) What is the yield to maturity of a bond that has 5 years left to maturity, has 12.5 percent coupon and a face value of Taka 1,000, and market price is Taka 933.74?

  • Assume everything else remains unchanged. This is year 2021. What is the expected price of the bond exactly one year later?
  • What is the expected capital gain if the investor decides to hold the bond for another year? (Assume everything else remains unchanged. This is year 2022. The investor holds the bond till 2023

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