a) A bond is a debt instrument issued by a borrower who has borrowed a sum of money (the principal) and promises to pay the principal and interest, on a specific date, to the holders of the bonds. Explain FOUR types of bonds.

b) Spring Corporation has a level-coupon bond with a 9% coupon rate and is paid annually. The bond has 20 years to maturity and a face value of RM1,000; similar bonds currently yield 7%. By prior agreement, the company will skip the coupon interest payments in years 8, 9, and 10. These payments will be repaid, without interest, at maturity. Calculate the bond's current value.