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
Posted: Tue Jan 18, 2022 12:57 pm
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)
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)