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What is the price that can pay for the bond

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A company issues bond of RM 10,000 which will pay an interest of RM 0 in the first year, RM 250 in the second year, RM 500 in the third year, and RM 1,000 the fourth year.

Problem 1. Compute the yield to maturity for the above bond.

Problem 2. If you need a rate of return is 6% what is the price that you can pay for the bond?

Reference no: EM132678062

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