Mr. TEJAS is vice president of ABC steel Works Inc. The company is considering issuing bonds to satisfy part of its financing need for a new venture of Steel Plant, which is going to be launched in Western Region of Pune city. He knows that Indian Financial Market is sensitive to the price and terms and condition of bond issue. As a result of this fact he is reluctant to entertain with new issue. As a financial consultant, he is seeking your help on certain issues associated with bond contract features, price and yields. You are required to address the following issues on behalf of Mr. TEJAS.

a.What are the key features of a bond?

b.If they issue bond rupees 1000 of par value at selling price 900 rupees with coupon rate 10 percentage ,maturing after 7years ,what will be YTM i.e.yield to maturity that is value of r?