A bond matures in 20 years, at which time it pays the owner RM1,000. It also pays RM70 at the end of each of the next 20 years. If similar bonds are currently yielding 7%, what is the market value of the bond?

Select one:

a. under RM1,000

b. cannot be determined from the information given

c. over RM1,000

d. exactly RM1,000

Assume that Bunchy Inc. has an issue of 18-year RM1,000 par value bonds that pay 7% interest, annually. Further assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today? Round off to the nearest RM1.

Select one:

a. RM1,233.79

b. RM1,032.56

c. RM1,134.88

d. RM1,201.32

The prior Balance Sheet for for Al-Falah Berhad showed total assets as RM7,052,000; total current liabilities as RM700,000 and total owners equity as RM3,750,000. It is projected that total assets will increase by 5% in the coming year and all new financing will be funded by long-term debt (hence total owners equity remained the same). If total current liabilities is estimated to grow as total assets; hence calculate how much long-term debt is needed to finance future projects (i.e. what will its projected value be in the pro forma statement).

Select one:

a. RM2,954,600

b. RM3,432,400

c. RM2,602,000

d. RM2,919,600

Armada, Inc. bonds have a 4% coupon rate with semi-annual coupon payments and a RM1,000 par value. The bonds have 11 years until maturity, and sell for RM925. What is the current yield for Armada's bonds?

Select one:

a. 2.16%

b. 5.52%

c. 3.45%

d. 4.32%

Saltycustoms T-shirt is an online retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer. The company will order t-shirts 12 times over the next year. The company receives the same number of t-shirts each time it orders. The carrying cost is RM0.10 per shirt per year. What is the annual carrying cost of the t-shirt inventory (rounded to the nearest Ringgit Malaysia)?

Select one:

a. RM834

b. RM10,000

c. RM5,000

d. RM417