Question: QUESTION 2 (20 MARKS) (a) Define and briefly explain the following: i. Convertible bond ii. Callable bond (2.5 marks each) (b) A RM1,000 coupon bond

QUESTION 2 (20 MARKS) (a) Define and briefly explain the following: i. Convertible bond ii. Callable bond (2.5 marks each) (b) A RM1,000 coupon bond mature in 10 years has a coupon rate of 8 percent. Calculate the price of this bond, using the following market rate of interest of: i. 6 percent. (3 marks) ii. 8 percent. (3) marks) iii. 12 percent. (3 (c) In (a) i, calculate the price of the bond if the interest is paid semi-annually. (3 marks) (d) In (a) ii, calculate the price of the bond if the interest is paid-quarterly

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