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Question 2 A bond with a face value of RM1,000 pays coupon at 7% per...

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Question 2 A bond with a face value of RM1,000 pays coupon at 7% per annum. It has a remaining useful life of 15 years. (a) Calculate the market value of the bond, if the required rate of return is 7%. (2 marks) (b) Calculate the market value of the bond, if the required rate of return is 5%. (2 marks) (e) Based upon the answers in (a) and (b) above, calculate the yield-to-maturity of the bond, if its current market price is RM1,200. (2 marks) (TOTAL = 6 marks)

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