Question Supposed a 7 year bond with an 8 per cent coupon rate paid semi annually and the required rate of return is 6 per cent A par value is RM1,000 Based on the information given, answer the following questions Is the bond is currently trading at a discount, at par or at premium Explain If the required rate of return rises to 10 per cent, with semi annual compounding, what is the price will the bond trade for Explain the relationship between interest rate and bond price If the bond is trading for a price of RM1,034 74, what is the yield to maturity (YTM) Recalculate (b) with 10 per cent annual compounding Explain the different answers between (b) and (

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Question: Question: Supposed a 7-year bond with an 8 per cent coupon rate paid semi-annually and the required rate of return is 6 per cent. A

Question:

Supposed a 7-year bond with an 8 per cent coupon rate paid semi-annually and the required rate of return is 6 per cent. A par value is RM1,000. Based on the information given, answer the following questions.

Is the bond is currently trading at a discount, at par or at premium? Explain.
If the required rate of return rises to 10 per cent, with semi-annual compounding, what is the price will the bond trade for? Explain the relationship between interest rate and bond price.
If the bond is trading for a price of RM1,034.74, what is the yield-to-maturity (YTM)?
Recalculate (b) with 10 per cent annual compounding. Explain the different answers between (b) and (.

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