Task 2 (20 marks)

After graduation, you work as a Financial Analyst in a reputable multinational company in Subang Jaya. Your superior has assigned you a new task. You are required to analyse the following bonds.

Based on the above information, you are required to:

1. Compute the current bond prices for both companies if the interest payment is once a year. [7 marks]

2. Based on the above result, provide your conclusion. [4 marks]

3. Discuss three differences between debt and equity financing. [9 marks]

Task 2 (20 marks) After graduation, you work as a Financial Analyst in a reputable multinational company in Subang Jaya. Your superior has assigned you a new task. You are required to analyse the following bonds. F&N Holdings Company Coupon rate per annum Apollo Holdings Berhad 12% 12% Maturity in years 10 15 Yield to maturity per annum 10% 13% Par value of bond $1,000 $1,000 Based on the above information, you are required to: a) Compute the current bond prices for both companies if the interest payment is once a year. [7 marks] b) Based on the above result, provide your conclusion. [4 marks] c) Discuss three differences between debt and equity financing. [9 marks]