Investment is the purchase or creation of assets to to make gains in the future. Typically investment involves using financial resources to purchase a machine or building or securities or other assets, which will then yield returns to an organization or individual over a period of time.

Last year, Gary graduated with a Foundation in Arts from Quest International University Ipoh and received RM5,000 from his father as a graduation gift. Gary, now in his first year of a degree program, recently heard from a friend who earns a profit from investing in the bond market during this pandemic time.

Gary does not know much about investing or how people actually make money by investing. He asked you to help him in making a wise investment plan.

1. Before investing any money, explain to Gary about the risk involved.
2. Calculate the expected rate of return Gary would receive if he buys bonds in Ace bond. Ace bond is a 15-year, RM1,000 par value bond that pays 5.5 percent interest annually. The market price of the bond is RM1,085.
3. Determine the value of the bond given Garys required rate of return is 7 percent.
4. Advise Gary if he should buy the bond. Justify your answer.
5. Garys father, Mr. Xi is valuing an investment that will pay him RM12,000 the first year, RM14,000 the second year, RM17,000 the third year, RM19,000 the fourth year, RM23,000 the fifth year, and RM29,000 the sixth year (all payments are at the end of each year). Determine the value of the investment to Mr. Xi now if the appropriate annual discount rate is 11%.

Need help for a, b, c, d and e