Determine the value of Bond VV if it was issued six years ago with 12% interest quarterly. The market return is at 8% with the assumption that the bond will mature in three years time. Answer

A. RM 1249.97

B.RM 100.02

C. RM 980

D. RM 1105.75

TokTik Sdn Bhd issued 200 000 units of convertible bonds last year. The bond comes with 10 years of maturity period and 9% coupon rate. The conversion price will be at discount by 15%. Earnings per share and price earnings ratio is at RM0.40 and 7 times respectively. Assume the tax rate is at 40%.

By referring to the above statement, find the conversion premium in percentage.

Answer

A. 15%

B. 15%

C. 28.57%

D. 28.57%

LuluMove Bhd paid dividend of RM2.20 per share last year. They expect the dividend will grow at 12% per year. Compute the intrinsic value if the required rate of return is at 17%. Answer

A. RM 44

B.RM 14.49

C.RM 49.28

D.RM 21.45

A common stock paid a dividend of RM3 per share last year. The market rate is yielding at 8%. Compute the price that you are willing to pay if the dividend grow at 6% per year. Answer

A. RM 259

B. RM 240

C. RM 159

D. RM 140

A bond is priced at the market at RM300 and has a coupon of 8%, with 6 years to maturity. Find the yield to maturity for this bond. Answer

A. 15.13%

B. 5.64%

C. 11.41%

D. 30.26%