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please use interpolation method only ( formula) Dont use excel or table QUESTION 4 (16 MARKS) A RM100 par value bond issued by AT&N with

image text in transcribedplease use interpolation method only ( formula)
Dont use excel or table
QUESTION 4 (16 MARKS) A RM100 par value bond issued by AT&N with maturity date of 2032 and a static coupon rate of 8.50 percent. AT&N pays interest to hondholders on a semi-annual basis on Januar 15 and July 15. On January 1, 2013. the bond had 20 years left to maturity. The market's required yield to maturity for a similarly rated debt was 7.5 percent per year. The bonds currently selling at RM120.00. Required: a) What is the value of the bond? (5 marks) (CLO1:PLO2:01) b) Calculate the bonds required rate of return (YTM). (5 marks) (CLO1:PLO2:CI)

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