In degneted

4. eorp1tal dhad mut be

im eluded whem estimading
WAce abbrayiaded weigned
da pidal, is equatiom tnat
putes avena e trade of netum tot an
orqoniqadlon te quineD to
Seeun idy holdes

relateA indened
debt paefennod sto et, ond
beanieg
s¢oek.

mvebdo no stoeu ol de s eOnee med

(db hose sd nom

C aden premi se
) n finanejut Nomoge ont A

odilieed ninei poly to fonmolee de ei ehs

hitoict
(b) Manket ben Rate is tale img
Matudy
(yerd
Hene,

MP -"53- 2

We know,

|27.

A
60
-o2 -- (!2)D

5o0 X o. 966 t 3338

33.33

23 5I668
 Say n

P =
((+o.oyt
(1.o6
o s258 t 71

1000

YTM = o.66 t loeo 1053-72

Sat, 5/.

60
Po (I-0s)3
(1.os)30
1200 Xo. 686 + 23|3
2 2. B5
23|.3
1163.73
X
|53.73 - 5)G.68
 Say, t o1
(
|500 X

-. YM =5/.
= 5 .

Motttyag
Muldi e y by 2 to
hi
hu y^N s mut eomponent eost o debt
(hgten- Can)
Kan ea e

o-|o (|- o.25)

75.
 Givem, Dp = loO X |o/.

We know

wheat ken de sotement 7e pn etenaed

Sto ek's yietd do'mves bon
Jessen thon
yleld do matoniby de bt s
Ppropniate

yheapen deebt beea

benetit

ORetained eaminA hog opPontuidy

Beaase
be
Givem,

B =| 2

= 0.0?+ t2(o.66)
t

PP Looh b

.o5

Po

4.19(1+ 6.o5)
+
50
 Yield pluo ni se Pnemym aPpnoaoh

Yield = |b/.
ik preniym = LAvenay

Yielt t
t y

ns(pe = 13. S7.

1

1lseaPMO IM2l.

Bord ield nisk pemi vn = Y7

Aven a cot equdy =

I3.s
3
 aPpno aeh
aeh

DUp- fno Cos

Begulete
2
Given

Aften adlinq flobad) on eos (1o)

(I- o15)
425

app no eh

t
Po
419(1to.05)
42-5

I5.35/,
 Hee,

25/ on .2 6

Wp

n
W = 6o.

N
O. 6225 +066) t

Jllo uig Joeto Cohd nol

goltor
po liey
polley.
 dhot connot
Sello uing Gaetos boloar

naten