Seawall, a potential investor with an expected return of 12%, is interested to invest in an 8 years, 9% bond which is selling for RM800. Calculate for him the bond's:

I. Current yield

 ii. Yield to maturity 

  

Syariah Corporation is considering the purchase of a 10%, 20 years corporate bond with a market interest yield of 12%. The corporation expects the market interest to be 9% next year. Determine the price of the bond today and in one year's time

c. Marsh Berhad is experiencing a period of rapid growth. Dividends per share are expected to grow at a rate of 16% during the next 2 years, 14% in the third year and at a constant rate of 8% thereafter. Marsh Bhd's last dividend, which has just been paid, was RM1.25. If the required rate of return on the stock is 12%, current P/E ratio is 40 and earnings per share are RM0.88.

i. Calculate the intrinsic value of Marsh's stock.

ii. Would you buy Marsh Bhd's share? Why? 

  

Answer rating: 100% (QA)

Sure lets break down each part of the question I Bond Analysis for Seawall 1 Current Yield Current Y... View the full answer