Bonds tend to offer a reliable cash flow, which makes them a good investment option for income investors. A well-diversified bond portfolio can provide predictable returns, with less volatility than equities and a better yield than money market funds. Panda bond is a 15-year, RM1,000 par value bond that pays 5.5 percent interest annually. The market price of the bond is RM1,085. a. Compute the Panda bonds' expected rate of return. (5 marks) b. b. Determine the value of the Panda bond if your required rate of return is 7 percent (5 marks) c. Based on the answer in (a) and (b), should you purchase the Panda bond? Justify your answer. (4 marks) Page 6 of 9 BBA 2013 / BBA 2104 INTRODUCTION TO FINANCE/FA/S01 d. Find the value of another bond, Sakura Bond which is maturing in 6 years, with a RM1,000 par value and a coupon interest rate of 10% (paid semi-annually) if the required return on similar-risk bonds is 14% annual interest