Q2. Pakistan Cables offers 5-Year bonds with 8% coupon (semiannual interest payment). Redemption value is Rs: 1200. Inflation risk premium on these bonds is current inflation rate plus 2%, and default risk premium of Pakistan Cables is 3% followed by 2.5% of industry risk premium. Determine the annual interest for 5-Years bonds issued by Pakistan Cables? (Marks 02) What could be the impact of above situation on coupon interest rate and discount rate on these bonds. (Marks 02) What could be the impact of above situation on coupon interest rate and discount rate on these bonds if the coupon on these bonds is Current inflation plus 5%. (Marks 02)