[Solved] A 20-year bond issued by Roadwork Berhad

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A 20-year bond issued by Roadwork Berhad pays 10% coupon semi-annually with a par value of RM1,000. The current market price of the bond is

A 20-year bond issued by Roadwork Berhad pays 10% coupon semi-annually with a par value of RM1,000. The current market price of the bond is RM1,100 and is callable in 8 years at a call price of RM1,150.

Find the current yield of this bond. (2 marks)

Calculate the yield to maturity (YTM) semianually and annually for this bond. (4 marks)

Calculate the yield to call (YTC) semianually and anually for this bond. (4 marks)

[Total: 10 Marks]

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