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FBM Ltd issued a bond with a par value of RM1,000, a coupon rate of 8%, and a yield to maturity of 7%. After three
FBM Ltd issued a bond with a par value of RM1,000, a coupon rate of 8%, and a yield to maturity of 7%. After three years the market price of the bond had decreased by 5%. Required: (i)What is the value of the bond after three years? (7 marks) (ii) What is the bond current yield in year three? (5 marks) (iii)What should be the most logical action to be taken by the investor of the bond? (3 marks)
Please do it as soon as possible thanks
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