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Jamie is considering purchasing a bond of the Amazin Corporation. The bond has a par value of RM1,000 with 10 percent coupon rate and will

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Jamie is considering purchasing a bond of the Amazin Corporation. The bond has a par value of RM1,000 with 10 percent coupon rate and will mature in 5 years. Assuming a yield to maturity of 8%, answer the following questions: a) What are the cash flows that he should receive from years 1 to 5 if he were to hold the bond until maturity? (6 marks) b) If he plans to hold the bond until maturity, what is the total cash he will receive from the bond after 5 years? Assume that the periodic cash flows are reinvested at 8%. (5 marks) c) If he plans to hold the bond only for 2.5 years and then sell the bond, what will be the total cash he will receive after the 2.5 years? Assume that the periodic cash flows are reinvested at 8%. (7 marks) d) What is the total cash he will receive from the bonds after 2.5 years if interest rates (7 marks) increased to 9%? How does this compare with the answer in part b

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