Question 1 During the last holiday, you worked in a commercial bank as an Intern. In the first week, you were assigned to work with the bond desk. The first task given to you is to price two (2) types of bond, namely: zero coupon bond and fixed rate bond. (a) Develop and implement a function zero_coupon_bond_price() that calculates the price of a zero coupon bond by accepting 3 input parameters: Par_value, market rate r (yield to maturity) and tenor n (in years), Pero zero_coupon_bond Par value (1+r)" (6 marks) (b) Develop and implement a function bond_price() that calculates the price of a fixed rate bond by accepting 4 input parameters: Par_value, coupon_rate, market rate r (yield to maturity) and tenor n (in years), coupon_rate * Par_value 1 + fixed_rate_bond Par value (1+r)" r (1+r)" (10 marks) (C) Solve for the prices for the following bonds, round-off with two (2) decimal places: Zero Coupon Bond Par value = $1000 Market rate = 3% Tenor = 1 year Fixed Rate Bond Par value = $1000 Coupon rate = 5% Market rate = 4% Tenor = 6 years (4 marks) Question 1 During the last holiday, you worked in a commercial bank as an Intern. In the first week, you were assigned to work with the bond desk. The first task given to you is to price two (2) types of bond, namely: zero coupon bond and fixed rate bond. (a) Develop and implement a function zero_coupon_bond_price() that calculates the price of a zero coupon bond by accepting 3 input parameters: Par_value, market rate r (yield to maturity) and tenor n (in years), Pero zero_coupon_bond Par value (1+r)" (6 marks) (b) Develop and implement a function bond_price() that calculates the price of a fixed rate bond by accepting 4 input parameters: Par_value, coupon_rate, market rate r (yield to maturity) and tenor n (in years), coupon_rate * Par_value 1 + fixed_rate_bond Par value (1+r)" r (1+r)" (10 marks) (C) Solve for the prices for the following bonds, round-off with two (2) decimal places: Zero Coupon Bond Par value = $1000 Market rate = 3% Tenor = 1 year Fixed Rate Bond Par value = $1000 Coupon rate = 5% Market rate = 4% Tenor = 6 years (4 marks)