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QUESTION 4 (25 MARKS) Given below is information about three RM1000 par value bonds, each of which pays coupon semiannually . The required rate of
QUESTION 4 (25 MARKS)
Given below is information about three RM1000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 10%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value.
Bond | Coupon Rate (%) | Maturity (years) |
1 | 6 | 15 |
2 | 10 | 10 |
3 | 14 | 5 |
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