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a. A 14 year, RM1,000 par value Fingen bond pays 9 percent interest annually. The market price of the bond is RM1,100. Required: Compute the

a. A 14 year, RM1,000 par value Fingen bond pays 9 percent interest annually. The market price of the bond is RM1,100. Required: Compute the bond's yield to maturity. (4 marks) (CLO2:PLO2:C6) Determine the value of the bond if the required rate of return is 10 pecent. (4 marks) (CLO2:PLO2:C6) Should you purchase the bond? (2 marks) (CLO2:PLO2:C6) b. Briefly explain any THREE (3) features of the bonds. (6 marks) (CLO2:PLO2:C2) QUESTION 5 (17 MARKS) Encik Ridzuan owns 100 shares of Gunner's preferred stocks which currently sell for RM12 per share and pay annual dividends of RM0.80 per share. What is the value of preferred stock if the required rate of return is 8 percent? (2 marks) (CLO3:PLO2:C3) b. You bought a stock for RM25 and the dividend payment is expected to be at RM1.25. If your required rate of return is 15 percent and expected dividend growth at a constant rate of 'g', what is the expected value of the stock 3 years from today? (7 marks) (CLO3:PLO2:C3) c. Differentiate between common stock and prefer

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