1. The government wants to issue 10.00% 2018 bonds.

What should be the price if the yield

for 5 years is 10.00%?
2. The government wants to issue 10.00% 2018 bonds. What should be the price if the yield
for 5 years is 9.50%?
3. The government wants to issue 10.00% 2018 bonds. What should be the price if the yield
for 5 years is 12.00%?
4. What price should be paid for a 10% GOI 2015 issued earlier and available for sale today
in the market, if the FD rate of a Public Sector Bank for 2 years is 8% p.a.?
5. What yield will an investor get if the price of a 7.50% GOI 2018 is Rs 98.00?
6. The following bonds issued earlier are available for sale today in the market. What price
would you quote for these bonds if in the latest Auction of GOI for 5 years were issued at
9% coupon?
a. 9% GOI 2018
b. 14% GOI 2018
c. 0% GOI 2018
d. 9 % ICICI Bank 2018