Calculate the current price of bond s and bond t

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a) Singtel Bhd. has two different bonds currently outstanding. Bond S has a par value of RM20,000 and matures in 15 years. Bond S has no payment for the first six years, then pays RM2,000 over the subsequent six years semi-annually. Bond S continues to pay RM2,400 over the last five years semi-annually. Bond T is a zero-coupon bond, has a par value of RM15,000 and matures in 15 years. The required return for both of these bonds is 8 percent compounded semi-annually. Calculate the current price of Bond S and Bond T.

b) Discuss the THREE factors that determine the level and shape of the yield curve.

c) Discuss the ways of selecting a benchmark and its importance in financial statement analysis.

Reference no: EM132576517

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