It is 5 July 2021, and Hajia Hamida is buying 5,000 units of a GHS100 face value bond with ten years to maturity. The quoted price of the bond is GHS97.55 currently. The coupon rate on the bond is 18% and interest is paid semi-annually: on 30 June and 31 December in each year. Assume 365-day year convention. Required: (a) Compute the current yield on the bond. [2 marks] (b) Calculate the interest that has accrued since the last interest payment. [3 marks] (c) How much would she pay for the 5,000 units of the bond? [3 marks] (d) Explain the advantage of a bond with a put provision to investors (i.e., bondholders). [2 marks] Bond Price = Interest/kd Bond Price = Interest[(1 - 1/(1+k_d )^n \/k_d] + RV/(1+k_d )^n Accrued interest = (Annual Interest)/m * (Days since last interest payment)/(Interval between interest payments) Current yield = Interest / Price