Question 2 Jaguh Bhd. is considering investing in either Bond A or Bond B. The bands both have RM 1,000 par value and 11 percent coupon interest rate and pay annual interest Bond A has exactly 5 years to maturity, and Bond B has 15 years to maturity. Required: (a) Calculate the values of Bond A and B respectively at each of the required returns of 8 per cent, 11 percent and 14 percent (18 marks) (b) From your findings in part (a) above, complete the following table and discuss the relationship between time to maturity and the changing required returns. (Your discussion must include which bond Jaguh Bhd should invest in) Required return (%) Value of Bond A Value of Bond B 8 I 11 14 (marks) (c) Explain the differences between a bond's coupon Tate, current yield and yield to maturity (6 marks) Total: 30 marks]