After graduation, you work as a Financial Analyst in a reputable multinational company in Kuala Lumpur. Your superior has assigned you a new task. You are required to analyse the following bonds. Company. Petron Berhad Shell Corporation Coupon rate per annum 10% 10% Maturity in years 15 10 Face value per bond $1,000 $1,000 Yield to maturity per annum 11% 13% Current selling price per bond $900 $1,100 Based on the above information, you are required to: a) Compute the current bond prices for both companies if the interest payment is once a year. b) Based on the above result, provide your conclusion. c) Discuss three main differences between conventional bond and Islamic bond.
After graduation, you work as a Financial Analyst in a reputable
multinational company in Kuala Lumpur. Your superior has assigned you
a new task. You are required to analyse the following bonds.
Company. Petron Berhad Shell Corporation
Coupon rate per annum 10% 10%
Maturity in years 15 10
Face value per bond $1,000 $1,000
Yield to maturity per annum 11% 13%
Current selling price per bond $900 $1,100
Based on the above information, you are required to:
a) Compute the current bond prices for both companies if the interest
payment is once a year.
b) Based on the above result, provide your conclusion.
c) Discuss three main differences between conventional bond and
Islamic bond.
