i.If you purchase a bond on 1^st Jan, 2009 which was issued on January 1, 2007. The bond has a 9.5% annual coupon and had a 30-year original maturity. There is 5 years of call protection (until December 31, 2011), after which time it can be called at 109% of par, or Rs.1,090. Interest rates have declined since it was issued; and it is now selling at 116.575% of par, or Rs.1,165.75.

a.Calculate the yield to maturity?

b.Calculate the yield to call?

ii.An 8% semiannual coupon bond matures in 5 years. The bond has a face value of Rs.1,000 and a current yield of 8.21%. What are the bond's price and YTM?

iii.You have two bonds in your assets that have a face value of Rs.1,000 and pay a 10% annual coupon. Bond X matures in 15 years, while Bond Y matures in 1 year.

What will the value of each bond be if the going interest rate is 5% and 12%?