Consider the following bond and answer required:

Siddhartha Bank has a bond currently trading at NEPSE @ Rs. 1200 per bond, the bond has remaining maturity period of 6 years, the bond pays 10% coupon rate on face value. The current market interest rate is 12%, value this bond with appropriate valuation model and decide whether you invest in this bond or not, why? Also explain the relationship between value of bond and market interest rate? (3+2 Marks)

For this same bond if you want to purchase it at current market price and hold it until the maturity what is yield to maturity (YTM) of this bond calculate with interpolation method? (5 Marks)