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Question 6 Lukman purchases two RM1,000 par value 20-year bond with 9% semiannual coupons at price RM925. He reinvests his first bond's coupon payments at

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Question 6 Lukman purchases two RM1,000 par value 20-year bond with 9% semiannual coupons at price RM925. He reinvests his first bond's coupon payments at a nominal rate of 7% convertible semiannually and another bond's coupon at nominal rate of 8% convertible semiannually. Calculate the difference of his nominal annual yield rate convertible semiannually over the twenty-year period between the first and second bond. Question 7 You are given the following information about an investment account:- Date Value Immediately Before Deposit/Withdraw, Deposit/Withdraw, RM RM January, 1 June, 1 3,000 X December, 31 3,500 4X (a) (b) If the time-weighted rate of return is 4.9%, compute X. Based on X obtained, compute the dollar-weighted rate of return

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