the yield to maturity for uired rate of return is 1:

MATLAB: An Introduction with Applications
6th Edition
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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(b)
Emerald Berhad issues a 20-year bond, 5 years ago with a par value of RM1,000 and pays
a coupon rate of 10% per annum. Currently, it is selling at a price of RM950.
i. Calculate the yield to maturity for this bond by using the interpolation method.
ii. If your required rate of return is 12%, would you buy this bond? Why?
Transcribed Image Text:(b) Emerald Berhad issues a 20-year bond, 5 years ago with a par value of RM1,000 and pays a coupon rate of 10% per annum. Currently, it is selling at a price of RM950. i. Calculate the yield to maturity for this bond by using the interpolation method. ii. If your required rate of return is 12%, would you buy this bond? Why?
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