RIZKI bank purchased RM2.0 million of Malaysian Government Securities (MGS) on 27 April 2016 over spot at 98.80 (price per 100 units) with value date on 1 May 2016. The coupon date is every 27 Oct and 27 April at the coupon rate of 4.42%.

1. Compute the principal, accrued interest and proceeds amount of MGS.

2. Based on the above, compute the proceeds amount if the MGS is sold in the money market at 105.00.