(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

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter11: Bond Pricing And Amortization (bonds)

Section: Chapter Questions

Problem 3R

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