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a) Based on the Danga Capital Berhad bond issuance (refer to the table below), answer the following questions (assuming the par value of the
a) Based on the Danga Capital Berhad bond issuance (refer to the table below), answer the following questions (assuming the par value of the bond is RM1,000): Facility Code 200900021 VS180037 Stock Code Primary Stock Code Stock Short Name Issuer Stock Description Listing Date Issue Date: Coupon Type Coupon Spread (b.p.s) i. ii. iii. 29 January 2018 26 January 2018 Lead Arranger Lead Semi-annually Danga Capital Berhad 26/01/33 Danga Capital Berhad DANGA IMTN 4.94% 26.01.2033 - Tranche 8 Lead Arrangers: AmInvestment Bank Berhad and CIMB Investment Bank Berhad. Managers for Instrument Code the Issuance: CIMB Investment Bank Berhad and RHB Investment Bank Berhad Instrument Type ISIN Code Serial No Issue Amount Maturity Date Coupon Rate (%) Scripless (RENTAS) Islamic Securities Facility Agent MYBVS1800370 RM1,500,000,000 26 January 2033 4.94 p.a. CIMB Investment Bank Berhad Initial Rating Trading Basis SN/PN Ratio (%) AAA(s) by RAM Rating Services Berhad How much is the total coupon payment per year in RM and how many units are issued by the issuer? (4 marks) The bond is rated as AAA by the Rating Agency Malaysia (RAM). How does the rating affect the price of the bond and investor? (3 marks) Why bond's yield-to-maturity (YTM) is important and what is the relationship between the bond price and the YTM? (3 marks)
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