Question: QUESTION 4 7 A RM100 par value bond issued by AT&N with a maturity date of 2 rate of 8.50 percent. AT&N pays interest to

QUESTION 4 7 A RM100 par value bond issued by AT&N with a maturity date of 2 rate of 8.50 percent. AT&N pays interest to bondholders o 15 and July 15. On January 1, 2013, the bond had 20 years lett required yield to maturity for a similarly rated debt was 7.5 perce currently selling at RM120.00. (16 MARI ity date of 2032 and a stated coupon ders on a semi-annual basis on January cars left to maturity. The market's percent per year. The bond is 2 737 2 6=8.51 - 1140.075) 2017 +100 Cito Required: a) What is the value of the boha?" I 0.075 S5 I l 0. 67.34 + 2293 (5 marks) = 110.27 (CLOI:PLO2:C1) b) Calculate the bonds required rate of return (YTM). (5 marks) 315 (CLO1:PLO2:C1) Briefly explain the relationship between interest rate and bond price, (2 marks) (CLOI:PLO2:C2) c) d) Differentiate between callable bond and convertible bond. (4 marks) (CLO1:PLO2:C2)

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