Question
The current market is volatile and it is risky to engage with equity investment. Hence, you are thinking of investing in one of the following
The current market is volatile and it is risky to engage with equity investment. Hence, you are thinking of investing in one of the following securities. Based on Yield to Maturity (YTM), decide the best bond investment.
KOMI Bhd. 7% p.a. bond currently selling at par with 20 years to maturity, a par value of RM1,000.
SOGA Bhd. 9% p.a. bond currently selling at 10 percent premium with 25 years to maturity, a par value of RM1,000.
ZEEL Bhd. 6% semi-annually bond currently selling at 5 percent discount with 15 years to maturity, a par value of RM1,000.
The best investment is Bond SOGA with the highest yield.
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