Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are required to do a valuation of the bond. Assuming you have a fund of RM2,000,000, evaluate how can you allocating your investment into
You are required to do a valuation of the bond. Assuming you have a fund of RM2,000,000, evaluate how can you allocating your investment into buying the bonds and maximize your return. Company: CIMB Bond Name Return Min Max Current Ask to Yield po (%) Price Price Price Maturity CIMBMK 4.700% 0.01 100.25 100.61 100.25 4.646 07Aug2026 Corp (MYR) Semi annual bond: 10 years. So n= 20 Question: a) Calculate the bond value and construct a bond amortization schedule based on the yield to maturity (ask yield to maturity). b) Comment whether it is a discount bond or premium bond. You may also comment about whether the bond is overvalued or undervalued. c) Calculate the purchase price and quoted price for both of the bond, using semi- theoretical method. Assuming the coupon payment dates is in between 0.3, 0.6, 0.9. You are required to show the evaluation for every year You are required to do a valuation of the bond. Assuming you have a fund of RM2,000,000, evaluate how can you allocating your investment into buying the bonds and maximize your return. Company: CIMB Bond Name Return Min Max Current Ask to Yield po (%) Price Price Price Maturity CIMBMK 4.700% 0.01 100.25 100.61 100.25 4.646 07Aug2026 Corp (MYR) Semi annual bond: 10 years. So n= 20 Question: a) Calculate the bond value and construct a bond amortization schedule based on the yield to maturity (ask yield to maturity). b) Comment whether it is a discount bond or premium bond. You may also comment about whether the bond is overvalued or undervalued. c) Calculate the purchase price and quoted price for both of the bond, using semi- theoretical method. Assuming the coupon payment dates is in between 0.3, 0.6, 0.9. You are required to show the evaluation for every year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started