Financial asset is a claim against the income or wealth of a business firm, household, or unit of government. It represented usually by a certificate, receipt, computer record file, or other legal document, and usually created by or related to the lending of money. Explain FOUR (4) characteristics of financial assets.

(b) Elliot Enterprises bonds currently sell for RM1,150, have an 11 percent coupon interest rate and a RM1,000 par value, pay interest annually and have 10 years to maturity. Calculate:

1. Current Yield (CY).
2. Yield To Maturity (YTM).