1. The price of a Islamic bond is $920 with a face value of $1000.

Assume that the

annual coupons are $100, which is a 10% coupon rate. Maturity date for Islamic
bond is 10 years. Calculate yield to maturity for the Islamic bond using estimation
method.

2. Zul Berhad issued a Islamic bond that will maturing in 10 years. Market price is
RM 1,200 with face value RM 1,000. Coupon rate is 6%. Calculate the expected
rate of return.

3. Assume Cab Berhad issued Islamic bond with par value RM1000, Coupon rate is
8% and pay twice a year. If the potential required rate of return is 10%, how much
is the Islamic bond value?

4. Azrul owns a 10 years’ Islamic bond at RM1000 par value, and paying 8% Profit
annually. The required rate of return of the Islamic bond is 10%. Find the value of
the Islamic bonds?

5. Market price of Teguh Berhad Islamic bond is RM1300. The Islamic bond paid 6%
coupon Profit Semi Anually to face value of RM1000 and matures in 10 years. If
you buy this Islamic bond at market price,how much expected rate of return from
this Islamic bond?

6. Ali hold a Islamic bond maturity for 20 years at RM2,000 par value, and paying 4%
Profit Semi Annually. The required rate of return of the Islamic bond is 10%. Find
the value of the Islamic bonds