Question
A 10-year bond with a par value of RM1,150, pays a coupon rate of 8%. Analyze the current yield of the bond in the following
A 10-year bond with a par value of RM1,150, pays a coupon rate of 8%. Analyze the current yield of the bond in the following situations.
(i) Bond is trading at a discounted price of RM1,050. [5 marks]
(ii) Bond is trading at a premium price of RM1,210. [5 marks]
Please show manual calculation with explanation
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
14th Edition
1264101597, 9781264101597
