q1) ABC Ltd., has just issued a 8-year, 12 percent coupon bond of par value Rs.1000, interest is payable annually. Bonds may be called during the period of 4 years at a premium 5 percent at end of 4 year. The bond currently sells for Rs.1200.

Required;

a) What is the bond's yield to maturity?

b) What is the bond's current yield?

c) What is the bond's yield to call?

d) Capital gain or loss yield?

e) Current market price of a bond if market interest rate is 15% now.