Question
URGENT PLEASE HELP Alfonso Bond is an AAA rating bond and currently the market price is RM120. This bond has been issued 4 years ago
URGENT PLEASE HELP
Alfonso Bond is an AAA rating bond and currently the market price is RM120. This bond has been issued 4 years ago and has remaining 16 years. Its coupon rate is 6% and the yield to maturity (YTM) is 8% and the interest is paid annually. While Lalalu Bond is BBC rating bond, issued for 15 years, coupon rate is 7% and the YTM is 6%, interest is paid semi
annually. Current market price is RM90. Both bonds are domestic bonds.
Alotto bond has issued by US firm in Japan and denominated in yen currency. Its market price is RM125, coupon rate is 7% and its 10 years bond. While Jojoko bond issued by South Korea in UK and issue in pound sterling. Its market price is RM95, coupon rate is 10%, it has remaining 10 years from 15 years and interest paid semi-annually. Both bonds they are an AA rating.
Required:
a. Calculate the value of Alfonso and Lalalu bonds. (8 marks)
b. Calculate the YTM for Alotto and Jojoko bonds. (6 marks)
c. Assess Alfonso and Lalalu bonds. Should you invest in both bonds? Why? (4 marks)
d. Assess Alotto and Jojoko bonds. Is it worth to invest in these both bonds? Why? (4 marks)
e. Alotto and Jojoko is known as what type of bonds? Briefly explain. (4 marks)
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