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Megat is considering investing in either two outstanding bonds. Bond A pays interest semi - annually and bond B pays interest quarterly. The current selling

Megat is considering investing in either two outstanding bonds.
Bond A pays interest semi-annually and bond B pays interest quarterly.
The current selling price for bond A is RM2,100 and bond B is RM855,
respectively. The information is shown in the following table:
Based on information above, calculate:
i. Value of bond A and B. Is the bond selling at premium or
discount, and why?
(8 marks)
A : RM2,100
B : RM 855
ii. Yield to Maturity (YTM) for bond A and Current Yield (CY) for
bond B
(6 marks)
iii. If Megat has RM1,000 par value of bond with a coupon rate of
12 percent paid semiannually. The bond has 12 years maturity
period and currently trade at RM910 with ten years remaining
to its first call and the call price is at RM1,350. Calculate the
yield to call for the bonds.
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