Question: (16 MAN- QUESTION 4 A RM100 par value bond issued by AT&N with a maturity date o rate of 8.50 percent. AT&N pays interest to

(16 MAN- QUESTION 4 A RM100 par value bond issued by

(16 MAN- QUESTION 4 A RM100 par value bond issued by AT&N with a maturity date o rate of 8.50 percent. AT&N pays interest to bondholders on 15 and July 15. On January 1, 2013, the bond had 20 years le required yield to maturity for a similarly rated debt was 7.5 percent currently selling at RM120.00. V =3 Required: ty date of 2032 and a stated coupon ers on a semi-annual basis on January ears left to maturity. The market's cent per year. The bond is 18:51 0.02 - 40.07) +100 0.075 a) What is the value of the beat S5 il 0..- 67.34 + 2293 (5 marks) = 110.27 (CLO1:PLO2:C1) b) Calculate the bonds required rate of return (TM). (5 marks) (CLOI:PLO2:CI) c) Briefly explain the relationship between interest rate and bond price (2 marks) (CLO1:PLO2:C2) d) Differentiate between callable bond and convertible bond. (4 marks) (CLOT:PLO2:C2)

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