Required:

a$.$ How much interest would the firm pay each year on the simple$-$interest loan?

b$.$ How much would you write a check for to pay off the loan in one year?

c$.$ What is the monthly payment needed to pay off the fixed$-$payment loans?

d$.$ What is the current yield for each bond if the current price is:

i$.$ RM$930\mathrm{.}50$ for Bond #$1$

ii$.$ RM$859\mathrm{.}50$ for Bond #$2$

Level: III $(10$ marks$)$

e$.$ Identify and discuss briefly the factors that influence the market value of traded bonds.

Level: II $(10$ marks$)$