NationalmortgagecompanyCagamasBhdhasissuedanRM825millionbondand sukuk to fund the purchase of mortgage loans and Islamic house financing from the financial system. The bond has a par value RM1,000 with 8 percent coupon rate and will mature in 10 years. Dr. Reshmika is a retail investor and she has decided to buy the bond.

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

b) Give TWO (2) type of bonds and explain an advantages and disadvantages for each.