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The table below shows the bond issuer name, coupon, issue date, maturity date, rating, last traded price, first coupon payment date and previous coupon payment date: i. ii. Issuer Coupon Coupon Name Rate A B 3.6 6.06 Frequency Semi- annually Semi- annually Issue Date Maturity Date Rating Last Traded Price First Coupon Payment Date 27/4/2021 5/7/2018 27/10/2020 27/10/2030 A2 5/1/2018 5/7/2029 AA3 99.52 111.64 Previous Coupon Payment Date 27/10/2021 5/1/2022 The face value for these bonds is RM100. Assuming the last traded price listed above will be the price you have to pay to get these bonds, find their yield to maturity (YTM). If these two bonds are of the same maturity, do you expect its YTM will be almost the same value? Explain.

The table below shows the bond issuer name, coupon, issue date, maturity date, rating, last traded price, first coupon payment date and previous coupon payment date: i. ii. Issuer Coupon Coupon Name Rate A B 3.6 6.06 Frequency Semi- annually Semi- annually Issue Date Maturity Date Rating Last Traded Price First Coupon Payment Date 27/4/2021 5/7/2018 27/10/2020 27/10/2030 A2 5/1/2018 5/7/2029 AA3 99.52 111.64 Previous Coupon Payment Date 27/10/2021 5/1/2022 The face value for these bonds is RM100. Assuming the last traded price listed above will be the price you have to pay to get these bonds, find their yield to maturity (YTM). If these two bonds are of the same maturity, do you expect its YTM will be almost the same value? Explain.

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter11: Bond Pricing And Amortization (bonds)
Section: Chapter Questions
Problem 3R
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The table below shows the bond issuer name, coupon, issue date, maturity date, rating, last traded price, first coupon payment date and previous coupon payment date: i. ii. Issuer Coupon Coupon Name. Rate Frequency A B 3.6 6.06 Semi- annually Semi- annually Issue Date 27/10/2020 5/1/2018 Maturity Date Rating Last Traded Price First Coupon Payment Date 27/10/2030 5/7/2029 A2 AA3 99.52 111.64 27/4/2021 5/7/2018 Previous Coupon Payment Date 27/10/2021 5/1/2022 The face value for these bonds is RM100. Assuming the last traded price listed above will be the price you have to pay to get these bonds, find their yield to maturity (YTM). If these two bonds are of the same maturity, do you expect its YTM will be almost the same value? Explain.
Transcribed Image Text:The table below shows the bond issuer name, coupon, issue date, maturity date, rating, last traded price, first coupon payment date and previous coupon payment date: i. ii. Issuer Coupon Coupon Name. Rate Frequency A B 3.6 6.06 Semi- annually Semi- annually Issue Date 27/10/2020 5/1/2018 Maturity Date Rating Last Traded Price First Coupon Payment Date 27/10/2030 5/7/2029 A2 AA3 99.52 111.64 27/4/2021 5/7/2018 Previous Coupon Payment Date 27/10/2021 5/1/2022 The face value for these bonds is RM100. Assuming the last traded price listed above will be the price you have to pay to get these bonds, find their yield to maturity (YTM). If these two bonds are of the same maturity, do you expect its YTM will be almost the same value? Explain.
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