Q4. (a) A 10-year RM100 par value bond bearing a 8% coupon rate payable semiannually and redeemable at RM105 is bought to yield 6% convertible semiannually. Calculate the price of this bond. (5 marks) (b) Mr. Koh purchases a RM1,000 par value 10-year bond with coupons at 8% convertible semiannually which will be redeemed for x. The present value of the redemption value is RM301.51. Calculate x if the purchase price is RM800. (6 marks) (c) The interest paid during the 20th year on a 20-year RM1,000 bond with annual coupons to be redeemed at par is equal to 70% of the principal adjustment during the same year. If r = i+ 0.03, where r is the coupon rate and i is the yield rate, find the original price of the bond. (5 marks) A fund held by an investment manager had a value of RM2 million on 1 January 2019. RM2.5 million was invested on 1 May 2019. Immediately after this investment, the value of the fund was RM2.1 million. At the close of business on 31 December 2019, the value of the fund was 4.2 million. (i) Calculate the time-weighted rate of return for 2019. (3 marks) (ii) Calculate the dollar-weighted rate of return for 2019. (3 marks) (iii) Comment on your answers to part (i) and (ii) (3 marks) [Total: 25 marks]