Question 4 [ Valuation of bonds]

a. Briefly explain price-yield relationship of a bond.

b. ABJ Inc. issued 100 million bonds of $ 100 each Coupon 3.5% , Maturity 10 years.

Current yield of similar bonds issued by similarly rated borrowers is 3.25%.

Find out value of the bond.

Question 5 [ Stock return analysis]

Work out stock return of Microsoft Inc. over 2015-2019.

You may apply XIRR function for this purpose.

You may collect relevant information regarding share price and dividend from web sources.