Question: Below is the data for three semi-annual bonds: Table 2: data for three corporate bonds Bond Par Value Coupon Rate Years to Maturity Yield to

  1. Below is the data for three semi-annual bonds:

Table 2: data for three corporate bonds

Bond

Par Value

Coupon Rate

Years to Maturity

Yield to Maturity

A

RM1,000

8%

10

6%

B

RM1,000

6%

10

8%

C

RM1,000

8%

10

8%

  1. Calculate the prices for the above bonds.

(6 marks)

  1. Based on the above calculation in (a), find the impact of coupon rate and yield to maturity on the bonds price.

(3 marks)

  1. Distinguish between coupon rate and yield to maturity.

(4 marks)

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