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(d) Calculate the yield of maturity for an investor that has purchased a two-year bond for Rs 900. The bond will pay interest at 6%

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(d) Calculate the yield of maturity for an investor that has purchased a two-year bond for Rs 900. The bond will pay interest at 6% per annum for two years. The face value of the bond is Rs 1,600 and interest is paid quarterly. Discount factor 1 2 3 4 5 6 7 8 9 10 8% 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 11% 0.9009 0.8116 0.7312 0.6587 0.5935 0.5346 0.4817 0.4339 0.3909 0.3522 [6 Marks]

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