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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 4(25 MARKS)(a)Dana Hartas bonds mature in 8 years, have a par value of RM1,000, andmake an annual coupon interest payment of RM65. The market requires aninterest rate of 8.2% on these bonds. Calculate the bond's price. (5 Marks)(b)Hubline Berhads non-callable bonds currently sell for RM1,120. They have a15-year maturity, an annual coupon of RM85, and a par value of RM1,000.Determine the yield to maturity.(10 Marks)(c)MYEG Berhad bonds currently sell for RM1,050. They have a 6-year maturity,an annual coupon of RM75, and a par value of RM1,000. Find the currentyield. (5 Marks)(d)RXZ just issued zero-coupon bonds with a par value of RM1,000. If the bondhas a maturity of 5 years and a yield to maturity of 10%. Assuming that theinterest is compounding quarterly, compute the current price of the bond.(5 Marks)

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