QUESTION $3$:

Capital Assef pricong modn I$\text{'}$I

Assume that a $10-$year bond with a face value of Tshs $100,000$ is selling at a discoiut price of Tshs $95,000.$ It has an annual coupon incpme of Tshs $10,000.$ The investor plans to sell it after $5$ years at a price onf Tshs $97,000($at end of year $5).$

REQUIKED: Compute the following measures of bond yield:

$($i$)$ Nominal yreld, $($ii$)$ Discount yield, $($iii$)$ YTM$,($iv$)$ Current yield, $($v$)$ Holding period yield, $($vi$)$ Capital gain yield.