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Type of Bond Market price (RM) Coupon rate - % Malaysian Government Securities 667.97 0.70% AAA-rated corporate bonds 698.49 1.50% A-rated corporate bonds 702.79 1.80%

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Type of Bond Market price (RM) Coupon rate - % Malaysian Government Securities 667.97 0.70% AAA-rated corporate bonds 698.49 1.50% A-rated corporate bonds 702.79 1.80% BB-rated corporate bonds 695.17 2.50% CCC-rated corporate bonds 897.04 6.00% i) Calculate the yield to maturity and default risk premium of the above bonds. (10 Marks) c) Discuss why Jessica should also consider buying CCC rated bonds and the risk and potential rewards involved (Max Word Count: 200 words)

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