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A RM1,000,000 coupon bond mature in 10 years has a coupon rate of 5 percent. Calculate the price of this bond, using the following market
A RM1,000,000 coupon bond mature in 10 years has a coupon rate of 5 percent. Calculate the price of this bond, using the following market rate of interest of:
3 percent. 5 percent. 8 percent.
(15 marks)
In (a) i, calculate the price of the bond if the interest is paid semi-annually.
In (a) ii, calculate the price of the bond if the interest is paid-quarterly. (10 marks)
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