Question: Given below is information about three RM10000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is

 Given below is information about three RM10000 par value bonds, each

Given below is information about three RM10000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 14%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value. Bond Coupon Rate (%) Maturity (years) 8 5 2 14 10 3 16 15 ii. Using the Interpolation Method to calculate the YTM for the below Bonds: The par value RM18000 Coupon Rate 10% every year Maturity period 10 years Market Value of bond RM21800

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