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Fingens 14-year, RM1000 par value bonds pay 9% interest annually. The market price of the bonds is RM1100 and the markets required yield to maturity

Fingens 14-year, RM1000 par value bonds pay 9% interest annually. The market price of the bonds is RM1100 and the markets required yield to maturity on a comparable risk bond is 10%. i. Compute the bonds yield to maturity. [3 Marks] ii. Compute the value of the bond. [3 Marks]

iv.Justify your answer whether you should purchase the bond or not. [4 Mark]

iv. If the bond can be called in 5 years time at a call price of RM1200, calculate the Yield to Call (YTC). [3 Marks]

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