Syawal, a potential investor with an expected return of 12%, is interested to invest in an 8 years, 9% bond which is selling for RM800. Calculate for him the bonds: i. Current yield (4 marks) ii. Yield to maturity (5 marks) b. Syahirah Corporation is considering the purchase of a 10%, 20 years corporate bond with a market interest yield of 12%. The corporation expects the market interest to be 9% next year. Determine the price of the bond today and in one years time (6 marks) FBA/PFS2143/APRIL20 CONFIDENTIAL/3 c. Marsh Berhad is experiencing a period of rapid growth. Dividends per share are expected to grow at a rate of 16% during the next 2 years, 14% in the third year and at a constant rate of 8% thereafter. Marsh Berhads last dividend, which has just been paid, was RM1.25. If the required rate of return on the stock is 12%, current P/E ratio is 40 and earnings per share is RM0.88. i. Calculate the intrinsic value of Marshs stock. (6 marks) ii. Would you buy Marsh Berhads share? Why? (4 marks)