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Mermaid Berhad wishes to issue a callable bond. Bonds will have a 20 years maturity, the par value is RM1,200. The coupon payment is set
Mermaid Berhad wishes to issue a callable bond. Bonds will have a 20 years maturity, the par value is RM1,200. The coupon payment is set at RM150 and interest rate is 10 percent. If selling price is RM999.90 for this bonds, calculate:
i. Yield to Maturity (YTM)
ii. Yield to Call (YTC) if call price is RM1,300 and remaining years is 8 years.
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