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A 10-year bond pays 5% on a face value of $1,000. If similar bonds are currently yielding 10%, what is the market value of the

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A 10-year bond pays 5% on a face value of $1,000. If similar bonds are currently yielding 10%, what is the market value of the bond? (5 marks) (b) Anfield Ltd bonds are currently selling for $1.200 per S1000 par-value bond. The bonds have a 10% coupon rate and will mature in 10 years. What is the approximate yield to maturity? (5 marks) (c) Kenanga Investment Bank is evaluating an equity. Recently, Malaysia government's risk free rate is 3.5%. Calculate the following investment's expected return and its standard deviation. Should Kenanga Investment Bank invest in this equity compared to Malaysia risk free rate? Why? Return -5% Probability 0.20 0.10 0.40 0.30 3% 79 9% (10 marks) Using the CAPM (capital asset pricing model) and SML (security market line), what is the expected rate of return for an investment with a Beta of 1.8, a risk free rate of return of 4%, and a market rate of return of 10% (5 marks) (25 marks)

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