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Dato Sri Shanmuga has recently inherited RM200,000 and is considering purchasing 180 bonds of the SP Setia Corporation. The bond has a par value RM1,000

Dato Sri Shanmuga has recently inherited RM200,000 and is considering purchasing 180 bonds of the SP Setia Corporation. The bond has a par value RM1,000 with 10 percent coupon rate and will mature in 10 years. Calculate the value of bond and justify whether Dato Sri Shanmuga has enough money to buy the 180 bonds if the required rate of return is 8 percent.

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