(b) Mr Jamal Abdollah plan to buy either one of this two bonds below. The information for both bonds are shown as follows: Bond Selling price Coupon rate Maturity years Yield to maturity (YTM) Payment Par value BULAN i. Value of bond RM980 8 percent 25 years 12 percent Semi-annually RM1,000 BINTANG RM1200 10 percent 30 years 15 percent Annually RM1,100 Based on the information given, calculate the following both bonds: ii. Yield to call (YTC) if both bonds were redeemed at a price of RM1,000 for Bulan and RM1,500 for Bintang respectively after 10 years. N
(b) Mr Jamal Abdollah plan to buy either one of this two bonds below. The information for both bonds are shown as follows: Bond Selling price Coupon rate Maturity years Yield to maturity (YTM) Payment Par value BULAN i. Value of bond RM980 8 percent 25 years 12 percent Semi-annually RM1,000 BINTANG RM1200 10 percent 30 years 15 percent Annually RM1,100 Based on the information given, calculate the following both bonds: ii. Yield to call (YTC) if both bonds were redeemed at a price of RM1,000 for Bulan and RM1,500 for Bintang respectively after 10 years. N
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:(b) Mr Jamal Abdollah plan to buy either one of this two bonds below. The information for both
bonds are shown as follows:
Bond
Selling price
Coupon rate
Maturity years
Yield to maturity (YTM)
Payment
Par value
BULAN
i. Value of bond
RM980
8 percent
25 years
12 percent
Semi-annually
RM1,000
BINTANG
RM1200
10 percent
30 years
15 percent
Annually
RM1,100
Based on the information given, calculate the following both bonds:
ii.
Yield to call (YTC) if both bonds were redeemed at a price of RM1,000 for Bulan and
RM1,500 for Bintang respectively after 10 years.
INAL
SION SE
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