Assume that a RM1,000 par value bond has a coupon rate of 5% and will mature in 10 years. It has a current price of RM810.34. Given this information, answer the following questions.
(i) Calculate the yield of maturity of the bond.
(ii) Calculate the current yield of the bond.
(iii) Discuss why the current yield differs from the yield of maturity.
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