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Question 3 Nisrina Berhad is interested to invest in bonds. Currently its financial manager is evaluating Bond A and Bond B. Bond A pays 9%
Question 3 Nisrina Berhad is interested to invest in bonds. Currently its financial manager is evaluating Bond A and Bond B. Bond A pays 9% coupon semi-annually and matures in 12 years. Bond B pays 7% coupon annually having a maturity period of 13 years. i) Determine the value of each bond if the current market yield for both bonds is 8% ii) Assume Bond A iss currently selling at RM990 while bond B is selling at RM950. Which bond would Nisrina Berhad buy? Why
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