Question: B. Given the following information about three bonds listed below. Bond Face value Annual Coupon Rate Maturity Required Return A RM 1,000 7.50% 14 year
B. Given the following information about three bonds listed below. Bond Face value Annual Coupon Rate Maturity Required Return A RM 1,000 7.50% 14 year 9% B RM 1,000 7.50% 14 years 7.5% C RM1,000 7.50% 14 years 6% i. Calculate the value of each bond. (4.5 marks) ii. Explain what will happen to the value of each bond as the bond approaches maturity. (3 marks) iii. As an investor, under which of the circumstance should you subscribe the bond. (1 marks
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