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Please Answer Question 1 (Topic - Time Value Money, Bond and Stock Valuation) a. If Ahmad's income is RM5,000 and he expected that an annual
Please Answer Question 1 (Topic - Time Value Money, Bond and Stock Valuation) a. If Ahmad's income is RM5,000 and he expected that an annual increase of 3%, what will be his annual salary 10 years from today? b. Sharmila has the capacity to pay RM300 a month for a car loan at an interest rate of 6.5% for 8 years. How much will Sharmila borrow to purchase the car? c. If an investment has a cash flow streams of RM3,000 in 2 years, RM4,000 in 4 years and RM5,500 in 8 years. What is the present value of this investment if the discount rate is 5%? d. Maria aiming to deposit RM2,500 in a savings account that 3% interest per year. Two years from today, Maria expect to withdraw RM1,500. How much will remain in the savings account 6 years from today? e. TFF Company 10 years bond has a 12% coupon rate paid semiannually. This bond has been issued two years ago. If your required rate of return is 10%, what is the value of the bond? f. The common stock of SFS has a negative growth rate of 1.5% and a required return of 18%. The current stock price is RM11.40. What was the amount of the last dividend paid? g. What is the annual coupon rate on this bond if the current price of a 10 years, RM1,000 par value bond is RM1,158.91? Interest on this bond is paid every six months, and the nominal annual yield is 14%
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