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PORTFOLIO MANAGEMENT po DO POD An investor recently purchased a bond with Rs. 1000 face value, 10 per cent coupon rate, and six years to

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PORTFOLIO MANAGEMENT po DO POD An investor recently purchased a bond with Rs. 1000 face value, 10 per cent coupon rate, and six years to maturity. The bond makes annual interest payments. The investor paid Rs. 1032.50 for the bond. (a) What is the yield to maturity of the bond? (b) If the bond can be called two years from now at a price of Rs. 1080, what is its yield to call? company issues a deep discount bond of face value of Rs. 5000 at an issue price of Rs. 3550. The maturity period of the bond is 7 years. Determine the spot interest rate of the bond. 6. Assume a Rs. 1000 par value bond with 8.5 per cent coupon rate and a maturity period of 6 years. Determine the duration of the bond, if the current market interest rate is 10 per cent. 5. Sassum

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