A bond is expected to mature in 10 years with an RM1,000 face value. Given that the annual coupon payment: FINANCE Assignment, APU, Malaysia


Asia Pacific University (APU)

*We aren't endorsed by this school

Assignment Type

Individual Assignment



Uploaded by Malaysia Assignment Help



Question 2

1. A bond is expected to mature in 10 years with an RM1,000 face value. Given that the annual coupon payment is at the rate of 3%, and the expected rate of return is 7%. Compute the value of the bond that the New Wave will be received.

2. Next Gen Corporation plans to issue 30 million shares with a market value of RM1.00 per share, and RM20 million will be debt financing through bonds. The equity beta of the firm is 1.5. The yield on risk-free investment is 3% per year and the market risk is approximately 10% per year. The market risk premium is 7%. The par value and market value of each bond are RM1,000. The bond’s annual interest payment before tax is 5%. The firm pays taxation at the annual rate of 30%.

From the above information, you are required to:

1. The after-tax cost of debt.

2. The cost of the firm’s equity.

3. The weighted average cost of capital is based on your answers in parts (i) and (ii).

Get 30% Discount on This Assignment Answer Today!

Get Help By Expert

Seeking assistance with research paper writing or Malaysia assignment help? Your solution is here! Our team specializes in aiding students from Asia Pacific University (APU), Malaysia, specifically addressing FINANCE Assignments. From comprehending complex concepts like bond maturity and coupon payments to crafting top-notch papers, our experts are adept at guiding you through your coursework.Malaysian students can trust us to provide invaluable support in navigating the intricacies of finance assignments. Don't let academic challenges overwhelm you—pay our experts for the help you need to excel in your course!



Instant Paper Writing Services by Native Malaysia Writers

Plagiarism Free Solutions
100% Original Work
24*7 Online Assistance
Native PhD Experts
Hire a Writer Now
Convincing Features
Plagiarism Free Report
On-Time Delivery
Native Writers
A+ Quality
100% Confidential
24*7 Online Assistance

Get these features included in Your Assignment

Get Assistance for Assignments, online Exam, and Projects Writing