Question: ANSWER FOR 4b please for those who solve the different question i just give unlike please 4B ANSWER FOR B!!!!!!!!!! CONFIDENTIAL 4. Chris Johnson has


ANSWER FOR 4b please for those who solve the different question i just give unlike please 4B ANSWER FOR B!!!!!!!!!!
CONFIDENTIAL 4. Chris Johnson has observed Kayangan Industries Berhad and Hartalega Holding Berhad share on the Bursa Malaysia Derivatives market. He is interested to invest in those shares, and he has proposed to the fund manager to analyze which investment should he invest. The information for those shares is as follows: (b) Chris Johnson fund managers has proposed him to invest on Jigsaw Berhad where the firm is setting the terms on a new issue of bonds with warrants. The bonds will have a 30-year maturity and annual interest payments. Each bond will come with 20 warrants that give the holder the right to purchase one share of share per warrant. The fund manager estimate that the value of each warrant will be RM10.50. The interest rate is 10 percent. Calculate the coupon rate should be set on the bonds-with-warrants so that the package would sell for RM1,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
