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  3. as an active investor in the bond market, johnny p

As an active investor in the Bond market, Johnny purchased a sum of bonds at...

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Accounting

As an active investor in the Bond market, Johnny purchased a sum of bonds at a yield

of 12 percent p.a. Attached below is the bond purchase agreement between him and

MWAM Bank Berhad:

BOND PURCHASE AGREEMENT

Bond Name:

Green Initiative- MWAM 2010 Bond

Transaction Date: February 05, 2020

Account Reference: MWAMXT19789-01

Account Type: Conventional

Bond Term: 20-year Coupon

Interest: 8.00%

Issuance Date: March 15, 2010

Type of Bond: Straight

Par Value: RM1,000

Maturity Date: March 15, 2030

Coupon Date: Every March 15 and September 15

Consideration: By making PAYMENT, you agree to the Terms and Conditions set out as attached with this Purchase Agreement.

You are required to:

i) Compute the Book value on the transaction date.

ii) Determine the current yield on the date of purchase.

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