Rita Holdings Berhad is a property developer company in Malaysia. Due to high demand of

property, the company has decided to build up a new township which will be located at

Bangi. The projects estimated cost is RM750 million. Rita Holdings Berhad is planning to

finance the project by issuing bond. The bond has a par value of RM1,000 with a 9 percent

coupon rate and will mature in 15 years. Dr. Saiful is a retail investor and he has decided to

buy the bond.

1. Calculate the value of bond (Vb) if the required rate of return is 7 percent.
2. Determine the new value of bond (Vb) if the market rate has increased to 10 percent.
3. Find the Yield to Maturity (YTM). Use the answer in (ii) as your Present Value.
4. Calculate the Yield to Put (YTP) with the discount rate 6 percent after 3 years.
5. Calculate the Yield to Call (YTC) with the premium rate 5 percent after 8 years.

1. List TWO (2) types of shares.
2. Based on your answer in (b) explain an advantages and disadvantages for each type of shares.