x from warga 25GBP/ZNprojector message Partid=0:1 Drive Google. Google Inbox (110) - solarg. o Mal solangaly. Manipal Internation... Google Scholar Balinda System Bui 01. (a) Assuming there is a S-year 5% coupon hond with a face value of $101) trades at RM81046 (annual coupon bond). What is the yield to maturity and modified duration for this bond? (5 marks) Calculate the convexity for this hond. (7 marks) b) Derivative is believed to be a useful toul in financial risk. Explain FOUR (4) motives someone might use this tool (12 marks) (c) You are a big scale crude palm oil producer (produce 1000 tons yearly) and concerned about fluctuation of crude palm oil price in the coming months. You would like to hedge your price risk with forward contract instead of futures contract Explain your answer. (6 marks) (d) There are two major risks faced by investors in applying the interest rate swap in their lan portfolios. Justify these TWO (2) risks. (10 marks) [Total: 40 marks) I x from warga 25GBP/ZNprojector message Partid=0:1 Drive Google. Google Inbox (110) - solarg. o Mal solangaly. Manipal Internation... Google Scholar Balinda System Bui 01. (a) Assuming there is a S-year 5% coupon hond with a face value of $101) trades at RM81046 (annual coupon bond). What is the yield to maturity and modified duration for this bond? (5 marks) Calculate the convexity for this hond. (7 marks) b) Derivative is believed to be a useful toul in financial risk. Explain FOUR (4) motives someone might use this tool (12 marks) (c) You are a big scale crude palm oil producer (produce 1000 tons yearly) and concerned about fluctuation of crude palm oil price in the coming months. You would like to hedge your price risk with forward contract instead of futures contract Explain your answer. (6 marks) (d) There are two major risks faced by investors in applying the interest rate swap in their lan portfolios. Justify these TWO (2) risks. (10 marks) [Total: 40 marks)