QUESTION 4 (16 MARKS) A RM100 par value bond issued by AT&N with rate of 8.50 percent. AT&N pays interest 15 and July 15. On January 1, 2013, the bo required yield to maturity for a similarly rated currently selling at RM120.00. &N with a maturity date of 2032 and a stated coupon uary 1, 2013, the bond had 20 years left to maturity. The me a semi-annual basis on January naturity. The market's ercent per year. The bond is Required: a) What is the value of the bond? (5 marks) (CLO1:PLO2:C1) b) Calculate the bonds required rate of return (YTM). (5 marks) (CLO1:PLO2:C1) c) Briefly explain the relationship between interest rate and bond price. (2 marks) (CLO1:PLO2:22) d) Differentiate between callable bond and convertible bond. (4 marks) (CLO1:PLO2:C2) QUESTION 4 (16 MARKS) A RM100 par value bond issued by AT&N with rate of 8.50 percent. AT&N pays interest 15 and July 15. On January 1, 2013, the bo required yield to maturity for a similarly rated currently selling at RM120.00. &N with a maturity date of 2032 and a stated coupon uary 1, 2013, the bond had 20 years left to maturity. The me a semi-annual basis on January naturity. The market's ercent per year. The bond is Required: a) What is the value of the bond? (5 marks) (CLO1:PLO2:C1) b) Calculate the bonds required rate of return (YTM). (5 marks) (CLO1:PLO2:C1) c) Briefly explain the relationship between interest rate and bond price. (2 marks) (CLO1:PLO2:22) d) Differentiate between callable bond and convertible bond. (4 marks) (CLO1:PLO2:C2)