Alfalah Islamic Bank purchased a Government Investment Issue (GII) with the following details: Issuance date: April 17, 2015 Maturity date: April 17, 2018 Transaction Date: October 25, 2016 Coupon (profit) payment: 6.5% (paid semi-annually) Maturity value: RM100 million Yield: 7.5% per annum

a) Calculate the price of this GII at the transaction date. (8 marks)

b) Given the figure that you have calculated in (a) above, how do you interpret that number?