a)

b)
c)
d)
e)
f)

What is Bond Duration?

What is Convexity of Bond?
What is Yield Curve?
Explain importance of PE ratio.
What is Goodwill?
What is Dividend Discount Model?

1. Find the current market price of a bond having face value of Rs.1,000,
redeemable at par after 6 years maturity with YTM at 16% payable
annually and duration 4.3203 years. Also calculate modified duration
if YTM is reduced to 14%.
2. A company is currently paying dividend of Rs.200 per share. The
dividend is expected to grow at 16% annual rate for five years and
then at 11% forever. What is the present value of the share if
capitalisation rate is 12%.