(a)
(i) Zero Coupon Bond
The value of a zero coupon bond is the present value of its redemption value, discounted at the required yield. Assuming a nominal value of GH₵100, redeemable at par in 10 years at a 5% annual yield:
Value = 100 / (1.05)¹⁰ = 100 × 0.6139 = GH₵61.39

(ii) 8% Coupon Bond
The bond pays 8% coupon half-yearly (4% per half-year) and is redeemable at par after 10 years (20 half-year periods). The half-yearly yield is 2.5%. Assuming a nominal value of GH₵100:

• Half-yearly coupon payment = 4% of 100 = GH₵4
• Present value of coupons (annuity for 20 periods at 2.5%):
  PV = 4 × [1 − (1.025)⁻²⁰] / 0.025 = 4 × 15.589 = GH₵62.36
• Present value of redemption value (GH₵100 at end of 20 periods):
  PV = 100 / (1.025)²⁰ = 100 × 0.6103 = GH₵61.03
• Total value = 62.36 + 61.03 = GH₵123.39

(b)
(i) Zero Coupon Bond
With a yield of 6%, the value of a zero coupon bond redeemable at par (GH₵100) in 10 years is:
Value = 100 / (1.06)¹⁰ = 100 × 0.5584 = GH₵55.84

(ii) 8% Coupon Bond
The bond pays 8% coupon half-yearly (4% per half-year), redeemable at par after 10 years (20 half-year periods), with a half-yearly yield of 3%. Assuming a nominal value of GH₵100:

• Half-yearly coupon payment = 4% of 100 = GH₵4
• Present value of coupons (annuity for 20 periods at 3%):
  PV = 4 × [1 − (1.03)⁻²⁰] / 0.03 = 4 × 14.877 = GH₵59.51
• Present value of redemption value (GH₵100 at end of 20 periods):
  PV = 100 / (1.03)²⁰ = 100 × 0.5537 = GH₵55.37
• Total value = 59.51 + 55.37 = GH₵114.88