A) Sintokyo Berhads seven-year RM1,000 par bonds pay 9 per cent interest. Your required rate of return is 7 per cent. The current market price for the bond is RM1,100.

i. Determine the expected rate of return

ii. What is the value of the bonds to you given your required rate of return?

iii. Should you purchase the bond at the current market price?