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QUESTION 4 ( 2 5 MARKS ) ( a ) Dana Harta s bonds mature in 8 years, have a par value of RM 1
QUESTION MARKS
a Dana Hartas bonds mature in years, have a par value of RM and make an annual coupon interest payment of RM The market requires an interest rate of on these bonds. Calculate the bond's price.
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b Hubline Berhads noncallable bonds currently sell for RM They have a year maturity, an annual coupon of RM and a par value of RM Determine the yield to maturity.
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c MYEG Berhad bonds currently sell for RM They have a year maturity, an annual coupon of RM and a par value of RM Find the current yield.
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d RXZ just issued zerocoupon bonds with a par value of RM If the bond has a maturity of years and a yield to maturity of Assuming that the interest is compounding quarterly, compute the current price of the bond.
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