a) The Purple Company is about to issue a bond with semi-annual coupon payments, coupon rate of 8 percent and par value of RM1,000. The yield-to-maturity for this bond is 10 percent. Compute the price of the bond if the bond matures in five years, ten years, and fifteen years respectively.

b) Discuss the THREE factors that determine the level and shape of the yield curve.

c) Discuss why some bonds are selling at par, premium or discounts.