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Below is the data for three semi-annual bonds: Table 2: data for three corporate bonds Bond Par Value Coupon Rate Years to Maturity Yield to
- Below is the data for three semi-annual bonds:
Table 2: data for three corporate bonds
| Bond | Par Value | Coupon Rate | Years to Maturity | Yield to Maturity |
| A | RM1,000 | 8% | 10 | 6% |
| B | RM1,000 | 6% | 10 | 8% |
| C | RM1,000 | 8% | 10 | 8% |
- Calculate the prices for the above bonds.
(6 marks)
- Based on the above calculation in (a), find the impact of coupon rate and yield to maturity on the bonds price.
(3 marks)
- Distinguish between coupon rate and yield to maturity.
(4 marks)
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