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  3. c) a 10-year bond with face value of tzs. 1,000 an

c) A 10-year bond with face value of TZS. 1,000 and redeemable at par was...

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c) A 10-year bond with face value of TZS. 1,000 and redeemable at par was issued with a coupon rate of 7% payable annually. The coupon rate was consistent with the market interest rates prevalent then. The bond has got 6 years to maturity and the market scenario of interest rates has changed. The term structure of interest rates prevailing now is as follows: 1-year: 6.00% 4-year: 7.00% 2-year: 6.25% 5-year7.50% 3-year: 6.50% 6-year: 8.50% REQUIRED: Find the yield maturity of the bond. (6 marks) d) Explain why different sources of capital have different levels of risk and return. (2 marke

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