Question: Question 3 (a) Lahiyah Bhd has outstanding a RM1,000 par-value bond with an 8% coupon rate. The bond has 12 years remaining to its maturity

 Question 3 (a) Lahiyah Bhd has outstanding a RM1,000 par-value bond

Question 3 (a) Lahiyah Bhd has outstanding a RM1,000 par-value bond with an 8% coupon rate. The bond has 12 years remaining to its maturity date. () If interest is paid annually, find the value of the bond when the required retum is (1) 7%, (2) 8%, and (3) 10% (9 marks) Indicate for cach case in part () whether the bond is selling at a discount, at a premium or at its par value (3 marks) (111) Using the 10% required return, find the bond's value when interest is paid semiannually. (3 marks) ( 11)

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