The Marvel Corporation has issued a Rs $1,000$ par value bond due to mature $3$ years from now. The bond is issued at par and will be redeemed at par. It has a YTM of $8\%$

$($a$)$ What is the coupon amount that the bondholders will get every year, assuming annual coupon payments? Briefly explain how you arrived at the answer.

$($b$)$ Magic Corporation, a competitor of Marvel Corporation, is also planning to issue $3$ year bonds at a par value of $1,000.$ The bonds will have the same coupon rate as that of Marvel Corporation. Assuming that Magic Corporation prices the issue at Rs $970,$ what would be the YTM of the bond?

$($c$)$ If Magic Corporation had quarterly coupon payments, what would be the annual YTM of the bond $($effective annual rate$)?$ Explain the reason for the difference in YTM between part $b$ and $c.$

$($d$)$ You observe that the bonds of Magic Corporation have a higher YTM than the bonds of Marvel Corporation despite having the same maturity period and coupon rate. You also realize that this higher YTM is on account of the lower issue price.

Explain any two factors that might have led to the lower issue price $($higher YTM$)$ of