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Government of India has approved the issue of Deep discount bonds of Rural Electrification Corporation Limited with a face value of Rs. 30,000 having a

Government of India has approved the issue of Deep discount bonds of Rural Electrification Corporation Limited with a face value of Rs. 30,000 having a life of 10 years. The planned yield for the investors is 12 percent. a. Assuming a yield of 12 percent, at what price would you buy the bond? (5 Marks) b. If the bond is issued at Rs. 8,000, compute the yield assuming the bond is held till maturity

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