Question
The Government of the Republic of Indonesia plans to issue new SBN. SBN are securities issued by the government to finance the state budget and
The Government of the Republic of Indonesia plans to issue new SBN. SBN are securities issued by the government to finance the state budget and can be an investment instrument for holders (investors) because they can provide returns or profits. The following is data for one SBN as follows: coupon 15% p.a. will be paid annually, face value @ IDR 20,000,000,- and fall future 5 years. a) This bond is marketed at an exchange rate of 95, what yield will you get if you invest in this bond? assuming a tax rate of 20% b) In your opinion, the above bonds are marketed at a premium or at a discount? What's the difference? c) Explain the difference between SBN bonds (ORI) and corporate bonds?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started