1.Putra Bhd had issued a 15-year bond 7 years ago. These bonds pay 6% coupon semi-annually. The face value of the bond is RM1,000. It has been given a BBB rating. Recently, an 8-year bond was issued by Pendekar Bhd, with the same face value. These bonds pay 8% coupon annually and are still selling at face value. The investors' required rate of return is the current yield on the Pendekar Bond.

i)What should be the present value of the Putra Bond?(6m)

ii)If the Putra Bond is selling at RM850, will you buy it? Why or why not? (2m)