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Question No: 05 This is a subjective question, hence you have to write your answer in the Text-Field given below. Green bonds are bonds issued

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Question No: 05 This is a subjective question, hence you have to write your answer in the Text-Field given below. Green bonds are bonds issued by a company to fund renewable energy projects. Kuzlon India had raised financing for investing in wind power projects by issuing green bonds with ten years as a time to maturity. The green bonds were semi-annual bonds with an 8% p.a. (compounded semi-annually) coupon rate AAA rated. The Face value (par value) of the bond was 51000. Since these bonds enabled capital raising for projects with environmental benefits, the green bonds were issued at a premium. The yield to maturity of the bond was 6% p. a compounded semi-annually. What is the price of the bond today? What does the yield to maturity of the bond depend on? (5]

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