a) Dana Harta’s bonds mature in 8 years, have a par value of RM1,000, and make an annual coupon interest payment of RM65

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answerhappygod
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a) Dana Harta’s bonds mature in 8 years, have a par value of RM1,000, and make an annual coupon interest payment of RM65

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a) Dana Harta’s bonds mature in 8 years, have a par value of
RM1,000, and make an annual coupon interest payment of RM65. The
market requires an interest rate of 8.2% on these bonds. Calculate
the bond's price. (5 Marks)
b) Hubline Berhads’ non-callable bonds currently sell for
RM1,120. They have a 15- year maturity, an annual coupon of RM85,
and a par value of RM1,000. Determine the yield to maturity. (10
Marks)
c) MYEG Berhad bonds currently sell for RM1,050. They have a
6-year maturity, an annual coupon of RM75, and a par value of
RM1,000. Find the current yield. (5 Marks)
d) RXZ just issued zero-coupon bonds with a par value of
RM1,000. If the bond has a maturity of 5 years and a yield to
maturity of 10%. Assuming that the interest is compounding
quarterly, compute the current price of the bond. (5 Marks)
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