QUESTION $4(25$ MARKS$)$

$($a$)$ Dana Harta$$s bonds mature in $8$ years, have a par value of RM$1,000,$ and make an annual coupon interest payment of RM$65.$ The market requires an interest rate of $8\mathrm{.}2\%$ on these bonds. Calculate the bond's price.

$(5$ Marks$)$

$($b$)$ Hubline Berhads$$ non$-$callable bonds currently sell for RM$1,120.$ They have a $15-$year maturity, an annual coupon of RM$85,$ and a par value of RM$1,000.$ Determine the yield to maturity.

$(10$ Marks$)$

$($c$)$ MYEG Berhad bonds currently sell for RM$1,050.$ They have a $6-$year maturity, an annual coupon of RM$75,$ and a par value of RM$1,000.$ Find the current yield.

$(5$ Marks$)$

$($d$)$ RXZ just issued zero$-$coupon bonds with a par value of RM$1,000.$ If the bond has a maturity of $5$ years and a yield to maturity of $10\%.$ Assuming that the interest is compounding quarterly, compute the current price of the bond.

$(5$ Marks$)$