OTC Corporation issued an AA-rated bond with nominal value of RM150 million in 5 years' time. It bears a 5% semi-annual coupon rate and a yield of 8%. Calculate the coupon cash flow per period for the bond issue.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
A. RM3.75 million
B. RM6.00 million
C. RM7.50 million
D. RM12.00 million
Answer:A
OTC Corporation issued an AA-rated bond with nominal value of RM150 million in 5 years' time. It bears a 5% semi-annual coupon rate and a yield of 8%. Calculate the coupon cash flow per period for the bond issue.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
A. RM3.75 million B. RM6.00 million C. RM7.50 million D. RM12.00 million