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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Firm A
Face value- RM 1000000
Maturity-10 years
Coupon rate-8%
Effective rate-7%
Bond value= RM1070188
Firm B
Face value- RM1000000
Maturity-10 years
Coupon rate-8%
Effective rate-9%
Bond value= RM 935816
Do amortisation table for firm A and firm B with these elements:
(Year, Beginning amount, effective interest, coupon interest paid, premium amortisation, ending amount)
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- Note: answer without using excelarrow_forwardoptions: A)11.5% B)10.1% C)5.1% D)7.35%arrow_forwardCalculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Company CouponRate MarketPrice TimeSince LastInterest AccruedInterest Commissionper Bond BondsPurchased TotalPrice Company 2 9.2 79.75 23 days $ $9.95 15arrow_forward
- Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase. (Round your answers to the nearest cent.) Company CouponRate MarketPrice TimeSince LastInterest AccruedInterest Commissionper Bond BondsPurchased TotalPrice Company 2 9.2 79.75 23 days $ $9.15 15 $arrow_forwardBond A: 10 Year annual bond, price $1010, coupon rate 6%, par $1000 Bond B: 10 year semi-annual bond, price $1010, coupon rate 6%, par $1000 Does Bond A have a higher cost of debt than Bond B?arrow_forwardPlease provide correct answer as per requiredarrow_forward
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