QUESTION 1 a) Find the value of a bond maturing in 10 years, with a RM1,...

 

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QUESTION 1 a) Find the value of a bond maturing in 10 years, with a RM1, 000 par value and a coupon interest rate of 10% paid semiannually. The required rate of return of the bonds is 14% paid semiannually. (5 Marks) b) Ahmed Berhad issue the bond with a RM 5,000 par value and a coupon interest rate of 12 percent paid annually. The required rate of return of the bonds is 16 percent paid annually. Find the value of the bond maturing in 9 years. (5 Marks) c) Use the constant-growth model to find the value of the common stock for each firm shown in the following table. Firm CIMB MAYBANK HONG LEONG Dividend expected 5.00 5.50 1.50 BANK RAKYAT 17.00 CITIBANK 33.00 next year (RM) Dividend growth 19% 5% 20% 10% 18% rate Required return 22% 15% 23% 17% 23% (10 Marks) [TOTAL: 20 MARKS] QUESTION 1 a) Find the value of a bond maturing in 10 years, with a RM1, 000 par value and a coupon interest rate of 10% paid semiannually. The required rate of return of the bonds is 14% paid semiannually. (5 Marks) b) Ahmed Berhad issue the bond with a RM 5,000 par value and a coupon interest rate of 12 percent paid annually. The required rate of return of the bonds is 16 percent paid annually. Find the value of the bond maturing in 9 years. (5 Marks) c) Use the constant-growth model to find the value of the common stock for each firm shown in the following table. Firm CIMB MAYBANK HONG LEONG Dividend expected 5.00 5.50 1.50 BANK RAKYAT 17.00 CITIBANK 33.00 next year (RM) Dividend growth 19% 5% 20% 10% 18% rate Required return 22% 15% 23% 17% 23% (10 Marks) [TOTAL: 20 MARKS]

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QUESTION 1 a The value of a bond maturing in 10 years with a RM1000 par value and a coupon interest rate of 10 paid semiannually and a required rate o... View the full answer