SAPM:

1.      What is the meaning of Bond and reasons for issuing of bonds?

2.      Explain various risk related to bonds.

3.      A) Determine nominal yield and current yield of Rs. 100 bond with a market value of     Rs. 80 and coupon rate of 8%.

B) A four year bond with a 7% coupon rate and maturity of Rs. 1000 is currently selling at Rs. 905. What is its yield to maturity?

4.      Find the approximate yield to maturity of the following data.

	Face value	Market value	Period	Capitalization rate
Bond I	100	80	10	14
Bond II	150	100	8	12

5.      Explain the following terms       a) Equity Valuation(EV)   b) Earnings per share(EPS)               c) Return of  Asset(ROA)          d) ROIC       e) Growth rate 

6.      What is Economic forecasting for securities? Explain the Forecasting Techniques.