Question
Consider the following information of MMHE Bond Description MMHE Bond Face value RM1,000 Maturity 10 Years Coupon rate 7.50% per annum Compounding (m) Annually a)
Consider the following information of MMHE Bond Description MMHE Bond Face value RM1,000 Maturity 10 Years Coupon rate 7.50% per annum Compounding (m) Annually
a) Assuming annual interest rate is 6.00% on the bond, calculate the value of the bond.(5 marks) b) Illustrate the discounting cash flows using the Macaulay Duration Schedule.(15 Marks)
c) compute i. Modified duration. (5 Marks) ii. Convexity(10 Marks)
QUESTION 2 (35 MARKS) Consider the following information of MMHE Bond Description Face value Maturity Coupon rate Compounding (m) MMHE Bond RM1,000 10 Years 7.50% per annum Annually a) Assuming annual interest rate is 6.00% on the bond, calculate the value of the bond. (5 marks) b) Illustrate the discounting cash flows using the Macaulay Duration Schedule. (15 Marks) c) Compute i. Modified duration (5 Marks) ii. Convexity (10 Marks)Step by Step Solution
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100 Great Cost Cutting Ideas From Leading Companies Around The World
Authors: Anne Hawkins
1st Edition
9814276928, 978-9814276924
