PLEASE DO NOT PROVIDE AN EXCEL SOLUTION a. 5% 5-year bond is available in the market at Rs. 950. What is the YTM of bond? b. If above bond will be called after three years at Rs. 970. What is the YTC of bond? c. A person purchases above bond at Rs. 950 and sells it next year at Rs 960. What is current yield and total return?

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.