A Tk. 1,00,000 par value Bond bears a coupon rate of 11% and matures after 5 years. Interest is payable semi-annually. Find the value of the bond if your required rate of return is 12% (Show calculation).

A Portfolio Consists of the 3 assets below :

Asset A: 40% of fund, expected return = 10%
Asset B: 30% of fund, expected return = 11%
Asset C: 30% of fund invested, expected return = 8%

(i) What is the expected return of the Portfolio? (Show calculation)
(ii) As Asset B has higher expected return, will you invest all fund in asset B? Why? Why not?