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(c) A RM1,000 bond matures in 10 years has a coupon rate of 8 percent. Calculate the price of this bond using the following market

(c) A RM1,000 bond matures in 10 years has a coupon rate of 8 percent. Calculate the price of this bond using the following market rate of interest: i. 3 percent ii. 5 percent iii. 7 percent. (12 marks) (d) From (C) above what can you tell on the relationship between the coupon rate, the market rate of interest and the price of bond? (6 marks)

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