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Question 4 a.On 1st January 2019, Indus Motors floated multiple bonds with a face value of Rs. 1,000 each to generate Rs. One billion for

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Question 4 a.On 1st 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? Marks 8 Question 4 b.From the above, at what rate bond will be sell at "Premium" and "Discount" Marks 2

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