mdc bulids and maintainsfreeway accross malaysia. theh have an outstanding issue of rm100 par value bondswiht a coupon an 5 percent copuon rate. the issue pays interest annually and has 12 yrs remaingto it maturirty

1) If bonds of similar risk are currenty earnig a 4% ratre of return, how much should mdc bond seel for today

2) describe the two posibble reason why the rate on similar risk bonf is below the coupon rate in MDC bond

3) if the required return were 10% instead of 4 % what would the current value of MDC bond be .contract this finding in part 1) and discusss.