Janet and Adam are married and both of them are in their mid-thirties. They have been very conservative with the little money that they managed to save over the years. So far, they have saved RM20,000 at their local bank. With a return of less than 5% on their savings, the couple realizes that they need a more aggressive investment strategy if they are ever going to be able to live comfortably in retirement. They are interested in investing in bonds, but they know very little about their valuation. They have contacted you, an investment advisor, to assist them with their investment strategy. 

2. Find the value if a 1-year, RM1,000 par value bond with 12 percent annual coupon if the required rate of return is 12 percent. What is the value of a similar 10-year bond?