i): 1. Compute the adjusted coupon, interest and period. 2. Find the present value of the bond. (ii): 1. Compute the bond par value plus the premium. 2. Compute the current yield. 3. Get a positive and a negative NPV (use the called adjusted period). 4. Calculate the YTM using the trial and error method and the YTM formula.

Exercise 1 Tixel Bhd has 8-year bonds outstanding. These bonds, which pay interest semi-annually, have a coupon rate of 9 percent and a yield to maturity of 8 percent. Face value and market price of the bonds is RM1,000 and RM1,100 respectively