Question
You are offered to buy a 4-year corporate bond in the beginning of its 7th month on its 3rd year for RM963.54. Its face value
You are offered to buy a 4-year corporate bond in the beginning of its 7th month on its 3rd year for RM963.54. Its face value is RM1,000 and its coupon rate is 5.172% p.a., with coupon paid at the end of each quarter. The annual percentage yield (APY) of a Malaysian Government Securities rate is now at 6.9%. Is RM963.54 a good price for you to buy the said bond?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
