You are given information concerning two issues of bonds, Bond Anom Berhad and Bond Baiduri Berhad, which have a par value of RM$100$ per unit. Both bonds pay a coupon of $10\%$ and are payable on a semi$-$annual basis. Bond Anom Berhad has $5$ years to maturity, whereas Bond Baiduri Berhad has $10$ years to maturity. Both bonds are currently trading as the par value.

From the above information, you are required to answer the following questions.

a$.$ Compute the current yield and the current yield to maturity of each bond.

$(4$ Marks$)$

b$.$ If the interest rate suddenly increases by $2\%,$ what is the percentage change in the price of Bond Anom Berhad and Bond Baiduri Berhad?

$(2$ Marks$)$

c$.$ If the interest rate suddenly drops by $2\%,$ what is the percentage change in the price of Bond Anom Berhad and Bond Baiduri Berhad?

$(2$ Marks$)$

d$.$ Interpret your findings in part $($b$)$ and $($c$).$

$(2$ Marks$)$