Question
Assuming that the following information was provided in a bond prospectus: Coupon rate = 2.50% p.a. Par value = RM1000 Interest rate = 3.5% Maturity
Assuming that the following information was provided in a bond prospectus:
Coupon rate = 2.50% p.a.
Par value = RM1000
Interest rate = 3.5%
Maturity period = 3
Required
a) calculate bond price (intrinsic value of bond)
(3 marks)
b) calculate Current yield of bond
(3 marks)
c) calculate Yield to Maturity of bond
(4 marks)
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The Handbook Of Traditional And Alternative Investment Vehicles Investment Characteristics And Strategies
Authors: Mark J. P. Anson, Frank J. Fabozzi, Frank J. Jones
1st Edition
0470609737, 978-0470609736
