Question 20 Zain Telecoms issues 3-year maturity 10\% Coupon Bonds to finance its fibre optic projects for the World Cup 2022. The yield to maturity is 10\% and the Par Value is $1,000 Required a. Calculate the price of the Zain Telecoms Bond [5 Marks] b. Is this a premium, discount or par bond? Why? 13 Marks! Answer [1 (Formulae) +2 (Working) +2 (Correct Answer )=5 Marks )] [Students are expected to round-up the answer to Par Value] [Students should avoid short-cuts and perform calculations on a step-by-step basis so as not tolose valuable marks in case their answer is wrong] b. This is a Par Value bond. This is because the bond price ($1,000) is equal to Par Value ($1,000)