1. Khuzairy Holdings Berhad is a property developer company in Malaysia. Due to high demand

of property, the company has decided to build up a new township which will be located at

Bangi. The projects estimated cost is RM500 million. Khuzairy Holdings Berhad is planning

to finance the project by issuing bond. The bond has a par value of RM1,000 with a 8

percent coupon rate and will mature in 10 years. Dr. Devendran is a retail investor and he

has decided to buy the bond.

Required:

1. Calculate the value of bond (Vb) if the required rate of return is 7 percent.

(5 marks)

2. Determine the new value of bond (Vb) if the market rate has increased to 9 percent.

(5 marks)

3. Find the Yield to Maturity (YTM). Use the answer in (ii) as your Present Value.

(3 marks)

4. Calculate the Yield to Put (YTP) with the discount rate 6 percent after 3 years.

(3 marks)

5. Calculate the Yield to Call (YTC) with the premium rate 5 percent after 8 years.

(3 marks)

*pls no handwriting, type full calculation. tq

need it asap