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GIve the solution step by step so i can understand. a. An investor bought bond from King Bhd. The investor's required rate of return is
GIve the solution step by step so i can understand.
a. An investor bought bond from King Bhd. The investor's required rate of return is 12%. The bond has a par value of RM1000 and a coupon interest rate of 8%. If the bond matures in 10 years, and coupon is payable on a semi-annual basis, i. Calculate the price of the bond. (3 marks) ii. Calculate the price of the bond if coupon interest rate is 12%. (3 marks) iii. Calculate the price of the bond if maturity period is increased to 12 years. (3 marks) iv. Explain with relevant theories about the changes calculated in (i), (ii) and (iii). (6 marks)Step by Step Solution
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