QUESTION 3 (20 MARKS) (a) i. Define bonds (1 mark) (b) ii. State THREE (3) types of bonds (3 marks) (c) MEOW bond has a coupon rate of 8 percent and a par value of RM1,000, and will mature in 20 years. If your required rate of return is 7 percent, what price would you be willing to pay for the bond? (4 marks) (d) Shameer & Amrey Corporation issues bond that have 10 percent coupon rate, given the interest paid quarterly and the bond mature in 4 years. The par value is RM 1,000. If your required rate of return is 8 percent, calculate the value of the bond? (4 marks) (e) Bob Corporation's bond maturing in 7 years pay 8 percent coupon interest on RM1,000 face value. However, interest is paid semi-annually. If your required rate of return is 10 percent, what is the market value of the bond? (4 marks) (1) Baby Corporation's bond maturing in 7 years pay 8 percent interest on RM1,000 face value. However, interest is paid semi-annually. If your required rate of return is 11 percent, what is the effective value of the bond? (4 marks) QUESTION 3 (20 MARKS) (a) i. Define bonds (1 mark) (b) ii. State THREE (3) types of bonds (3 marks) (c) MEOW bond has a coupon rate of 8 percent and a par value of RM1,000, and will mature in 20 years. If your required rate of return is 7 percent, what price would you be willing to pay for the bond? (4 marks) (d) Shameer & Amrey Corporation issues bond that have 10 percent coupon rate, given the interest paid quarterly and the bond mature in 4 years. The par value is RM 1,000. If your required rate of return is 8 percent, calculate the value of the bond? (4 marks) (e) Bob Corporation's bond maturing in 7 years pay 8 percent coupon interest on RM1,000 face value. However, interest is paid semi-annually. If your required rate of return is 10 percent, what is the market value of the bond? (4 marks) (1) Baby Corporation's bond maturing in 7 years pay 8 percent interest on RM1,000 face value. However, interest is paid semi-annually. If your required rate of return is 11 percent, what is the effective value of the bond? (4 marks)