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(b) Kabil Corporation has preferred share outstanding which pays 2 percent dividend out of its RM100 par value at the end of each year. Calculate

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(b) Kabil Corporation has preferred share outstanding which pays 2 percent dividend out of its RM100 par value at the end of each year. Calculate the current price of the preferred share if the required rate is 10 percent. (4 marks) (c) Zaiman is an investor, he currently considering to invest in bond, he interested in two bonds Durry bond and Masai bond. Following are the information of the both bonds: Durry bond The bonds have par value of RM1,000, 6 percent coupon rate and the tenure of the bond is 7 years. Given investor required rate of return is 8 percent. Masai bond The bonds have 10 years maturity with par value RM1,000 and coupon interest rate of 5 percent compounded annually and the required rate of return is 9 percent. Calculate the value of each bond. (10 marks) (d) RHB Capital Bhd issue bonds with par value of RM1,000 and coupon rate of 10 percent paid semiannually. The bond will mature in 10 years and required rate of return of similar investment is 8 percent. Compute the value of the bond. (7 marks)

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