Question 4 a. On 1^st January 2019, Indus Motors floated multiple bonds with a face value of Rs. 1,000 each to generate Rs. One billion for its Yaris car manufacturing division. Maturity of bond is 5 years, while interest rate on coupon is 8% per annum. What will be the bond value if market interest rate is 5% and 12% respectively?

Question 4 b. From the above, at what rate bond will be sell at Premium and Discount