question 1

i) The Salem Company bond currently sells for RM 960, has a 10 percent coupon interest rate and a RM1,000 par value, pays interest annually, and has 12 years to maturity. Calculate the Yield to Maturity (YTM) on this bond.

ii) A bond with 10 years to maturity and a coupon rate of 4 percent has a par, or face value of RM1,000. Interest paid annually. If your required a return of 8 percent on this bond, what is the value of this bond.