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  • Tutorial Bond Valuation

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    Ikram Muzammil
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    This document provides a tutorial on bond valuation and contains 4 questions. Question 1 asks the reader to calculate the price of a bond if the coupon rate is paid annually and semiannually, where the bond has a par value of RM1000, coupon rate of 7%, maturity of 25 years, and market interest rate of 12%. Question 1c asks the reader to calculate the bond's yield to maturity.

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    Tutorial

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    Bond Valuation

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    This document provides a tutorial on bond valuation and contains 4 questions. Question 1 asks the reader to calculate the price of a bond if the coupon rate is paid annually and semiannually, where the bond has a par value of RM1000, coupon rate of 7%, maturity of 25 years, and market interest rate of 12%. Question 1c asks the reader to calculate the bond's yield to maturity.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views2 pages

    Tutorial Bond Valuation

    Uploaded by

    Ikram Muzammil
    This document provides a tutorial on bond valuation and contains 4 questions. Question 1 asks the reader to calculate the price of a bond if the coupon rate is paid annually and semiannually, where the bond has a par value of RM1000, coupon rate of 7%, maturity of 25 years, and market interest rate of 12%. Question 1c asks the reader to calculate the bond's yield to maturity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    TUTORIAL

    BOND VALUATION
    QUESTION 1

    QUESTION 2

    QUESTION 3

    QUESTION 4
    Taashvina Corporation bonds are currently selling for RM1300 per RM1000 par value
    bond. The bonds have a 7% coupon rate and will mature in 25 years. The interest rate
    for this bond is 12%. Find:
    a. the price of bond if coupon rate is paid annually.
    b. the price of bond if coupon rate is paid semiannually.
    c. yield to maturity (YTM).
    (4 marks)

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