En. Ali is the owner of 100 bonds issued by ABC Bhd. These bonds have 8
years remaining to maturity, an annual coupon payment of RM80, and a par
value of RM1,000.
He purchased the bond 2 years ago when the interest rate was 8.5 percent.
Due to the pandemic, the interest rate has fallen by 1.7 percent from it was
2 years ago. Considering this, En Ali decided not to hold the bonds till
maturity but to sell it today.
Help him to compute his total capital gain from this investment
Comments
Leave a comment