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step step CS) b) Two bonds have details as shown: emita -winan 2 ond Duration and interest Yield to maturity (% per annum) um der

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CS) b) Two bonds have details as shown: emita -winan 2 ond Duration and interest Yield to maturity (% per annum) um der Kalve LOCU 10 year 16% per annum (payable twice a year) 12- Interest=0.16x loud -55 5 year 16% per annum (payable once a year) 12 Interest=0.16x10007 160 10 year zero coupon bond 8 Interoto. vhat rate of discount or premium is each of the bonds selling at? (8 marks)

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