Three years ago, an investor bought XYZ bonds at Tk. 1,025 each. Presently, these bonds are valued at Tk. 987 each in the market. Indicate the likely reasons why the price of the bonds could have changed from the time the investor purchased them three years ago.

2. What's the benefit of a 'make-whole call provision' in bonds for both the lender and borrower?

Bull bank purchased bonds two years ago. These bonds have a par value of $300 million and a coupon rate of 4.75 percent. As of today, they have seven years until they mature. Investors today are requiring a 5 percent yield to maturity.

a. What should be the market price today of these bonds?

b. If you realized yield on these bonds was 4.65 percent, how much did you pay these bonds two years ago?

Bonds are sometimes subject to call provisions which allow the lender to repurchase the bond at some future date for a specified price.1.) What practical impact does this have on the desirability of this investment? Explain your answer.2.) Aside from interest rate risk which affects all bonds, does a call provision create any other risk for the owner of such a bond?2.) How might such a call provision affect other aspects of the bond issuance such as the coupon rate?