Ali Corporation (Pvt) ltd put resources into Bond and Stock. Rupees 150,000 into Bond and 200,000 into Stock.

The cost of Bond H is Rs. 1000, and the cost of bond L is Rs. 848. Preceding the adjustment in the market required rate of return. The cost for Bond H will ascend from 1,000 to 1,171. The cost for Bond L will ascend from 848 to 1,000.

Stock B expected profit on each portion of stock is 3. Each portion of stock is as of now exchanging at 30 and has a normal development rate of 5%. Stock C's yearly profit on each portion of stock is 10. Each portion of stock is right now exchanging at 100.

Requirement:

a. Determine the Coupon Rate for both Bonds.

b. Determine the Role of Coupon Rate.

c. What is the yield on a stock? For stock B and C.