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- Khuzairy Holdings Berhad is a property developer company in Malaysia. Due to high demand
of property, the company has decided to build up a new township which will be located at
Bangi. The projects estimated cost is RM500 million. Khuzairy Holdings Berhad is planning
to finance the project by issuing bond. The bond has a par value of RM1,000 with a 8
percent coupon rate and will mature in 10 years. Dr. Devendran is a retail investor and he
has decided to buy the bond.
Required:
- Calculate the value of bond (Vb) if the required rate of return is 7 percent.
(5 marks)
- Determine the new value of bond (Vb) if the market rate has increased to 9 percent.
(5 marks)
- Find the Yield to Maturity (YTM). Use the answer in (ii) as your Present Value.
(3 marks)
- Calculate the Yield to Put (YTP) with the discount rate 6 percent after 3 years.
(3 marks)
- Calculate the Yield to Call (YTC) with the premium rate 5 percent after 8 years.
(3 marks)
*pls no handwriting, type full calculation. tq
need it asap
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