Compute the yield to maturity for the bond

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Question - 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.

Required -

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

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

Reference no: EM132723761

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