1. To expand its business, the HDAF Bhd. would like to issue a bond with par value of RMI,000, coupon rate of 10 percent, and maturity date of 10 years from now. What is the value of the bond if the required rate of return is;
2. i) 7 percent,
3. ii) 10 percent, and
4. iii) 13 percent?
5. Explain the changes to the value of the bond due to changes in required rate of return.

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b. Explain the purpose of bond ratings and types of risks associated with bond investment.

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