a) A 3-year RM 1,000 par value bond pays semiannual coupons at an effective rate of interest 6% convertible semiannually. It is sold to yield 5% convertible semi-annually. i) Calculate the price of the bond. ii) Construct the amortization schedule. (15 Marks) b) A RM 1,000 par value bond has 7.5% semiannual coupons and matures on 1st July 2020 at RM 1,050. By using the actual number of days, find: i) the actual selling price of this bond on November 15th 2016 based on an effective rate of interest 5.8% convertible semiannually. ii) the accrued interest (6 Marks) c) A RM 1,000 par value, 8 % bond with quarterly coupons is callable five years after issue. The bond matures for RM 1,000 at the end of 10 years and is sold to yield a nominal rate of 6% compounded quarterly under the assumption that the bond will not be called. Calculate the redemption value, at the end of five years, that will yield the purchaser the same nominal rate of 6% compounded quarterly. QUESTION 2 a) Narina purchased a 5-year financial instrument with the following features: i) The investor receives payments of RM 1,000 at the end of each year for 5 years. ii) These payments earn interest at an effective rate of 4% per year. At the end of the year, this interest is reinvested at the rate of 3% per year. Calculate the purchase price for Narina to produce a yield rate of 4%. b) Fiza as an investment manager had a fund of RM 100,000 at the start of the year. On 1st April 2021, the fund had grown to RM 112,000 and a new deposit of RM 30,000 was received. On 1st October 2021, the fund balance was RM 125,000 and a withdrawal of RM 42,000 was made. At the end of year 2021, the account balance was RM 100,000. Help Fiza to: i) Construct the time-weighted table and calculate the time-weighted rate of return for the year. (9 Marks) ii) Calculate the dollar weighted rate of return for the fund described