Sanofi Limited is considering three bonds for investment, A: Rs 1,000, B: Rs 1,000 and C: Rs 1, 00. Coupon (interest rate) payable annually bonds are, A: 12 percent, B: 13 and C: 14. The Years to maturity for the bonds are:

A: 5, B: 6, C: 7 and the redemption value for Bonds A: 1,000, B: 1,000 and C: 100. The current market price for bonds: A: Rs.900, B: Rs.850, C: 92.

1. What are the (a) yields to maturity (use the approximate formula) (b) durations, and (c) volatilities of these bonds that Sanofi is planning to invest?

(10 Marks)