Question: QUESTION 4 (25 MARKS) Given below is information about three RM1000 par value bonds, each of which pays coupon semiannually. The required rate of return

 QUESTION 4 (25 MARKS) Given below is information about three RM1000

QUESTION 4 (25 MARKS) Given below is information about three RM1000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 12%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value. Bond Coupon Rate (%) Maturity (years) 1 2 3 10 12 14 5 10 15 (25 marks)

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