ST manufacturing company is offering the following bonds for-00925
This subjective question is related to the book/course
vu cs601 Data Communication.
It can also be found in
vu cs601 Mid Term Solved Past Paper No. 1.
Question 1: ST manufacturing company is offering the following bonds for issue. Calculate the value of each bond.
Note:
Answer:
| Bond Par Value | (Rs.) Coupon Rate | (%) Years to Maturity | (Years) Req. Stated | Return (%) |
| A | 1,000 | 7 | 12 | 8 |
| B | 500 | 12 | 15 | 10 |
| C | 100 | 16 | 20 | 12 |
- In case of Bond A, interest payments are made annually
- In case of Bond B, interest payments are made semi-annually
- In case of Bond C, interest payments are made quarterly
