Answer to Question #286013 in Finance for azasazmi

Question

a) Aspian Tres Bhd issued a bond on March 18, 2019. The terms were as follows:

Currency Denomination Malaysian Ringgit

Denomination/Par Value MYR100,000

Maturity Date March 18, 2029, or an optional redemption date

Redemption/payment basis Redemption at Par Value

Interest Payment Dates March 18

September 18

Optional Redemption Date The issuer has the right to call the instruments in

whole (but not in part) at 10 percent call premium

starting March 18,2024 with a reducing premium of

200 basis point annually thereafter.

Interest Rate Fixed rate of 6% for the whole term of bond

A fund manager with XYZee Fund in Singapore is considering this bond on November

1st, 2020:

.

i) Compute the amount paid for a unit of this bond in the investor’s local currency if the

expected return on this bond is expected at 6.6 percent and the exchange rate is

SGD1/MYR3.06. (Disregard fees and other expenses)

Answer 1

solve in EXCEL