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(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
(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)
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