Question 3 a. A 6 percent RM1,000 bond matures in 12 years, pays interest semiannually, and has a yield to maturity of 6 percent. What is the current market price of the bond? Is it selling at par, discount or premium Why? What is the current yield (13 marks) b. A bond has a RM1,500 face value, a market price of RM1,560, pays annual interest payments of RM120 and matures in 12.5 years. What is the coupon rate? (2 marks) c. What was your real rate of retum if you eamed a rate of retum of 12.5 percent on your bond investments with the inflation rate of 4.5 percent? (4.5 marks) d. What was the actual noninal rate of retum of a bond yielded a real rate of retum of 4.5 percent for a time period when the inflation rate was 5.55 percent? (3 marks) Question 3 a. A 6 percent RM1,000 bond matures in 12 years, pays interest semiannually, and has a yield to maturity of 6 percent. What is the current market price of the bond? Is it selling at par, discount or premium Why? What is the current yield (13 marks) b. A bond has a RM1,500 face value, a market price of RM1,560, pays annual interest payments of RM120 and matures in 12.5 years. What is the coupon rate? (2 marks) c. What was your real rate of retum if you eamed a rate of retum of 12.5 percent on your bond investments with the inflation rate of 4.5 percent? (4.5 marks) d. What was the actual noninal rate of retum of a bond yielded a real rate of retum of 4.5 percent for a time period when the inflation rate was 5.55 percent