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Surzilah Hamad
(07DPM09F2006)

Patricia Goduis
(07DPM09F2007)

Noorirwanie Amir
(07DPM09F2008) to edit Master subtitle Click
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Farezah Abdul Rahman

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(07DPM09F2009)

Melynda Bernard
(07DPM09F2010)

4/25/12

Question 1 What Are Bond ?

is a debt security issued by companies or the government

Long term loans which are either

When you purchase a bond, you are lending

money to a government, corporation, federal agency or other entity known as an issuer.

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Question 2 What are the Characteristics of Bonds ?

Face value Coupon Maturity
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Question 3 What is the Yield & Price of bonds ?

Yield of bond is a figure that captures this change in value. It's the percentage return your bond investment promises at any given price. price of bond is approximately equal to the percentage change in price for a given change in yield, and may be thought of as the elasticity of the bond's price with respect to discount rates

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Question 4 How many types of bonds ? State the name of them.

Mortgage Bond Debentures Bond Eurobonds Subordinated Debentures Junk Bonds
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Question 5 How do I Buy Bonds ?

From bank Negara Malaysia bonds from qualified individuals, through secondary market trading a bonds from qualified agents

Buy

Buy

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Question 6 What is the duration of bonds ?

The term duration has a special

meaning in the context of bonds. It is a measurement of how long, in years, it takes for the price of a bond to be repaid by its internal cash flows. It is an important measure for investors to consider, as bonds with higher durations carry more risk and have higher price volatility than bonds with lower durations.

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For each of the two basic types of bonds the duration is the following: Zero-Coupon Bond Duration is equal to its time to maturity. Bond - Duration will always be less than its time to maturity.

1.

2. Vanilla

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Question 7 How to purchased bond in Malaysia

Bonds usually can be purchased from a bond broker through full service or discount brokerage channels, similar to the way stocks are purchased from a stockbroker. Dealing with a bond broker can be prohibitive to some, however, because many require high minimum initial deposits. Another way to gain exposure in bonds would be to go in directly through a bond fund - a mutual fund that only purchases bonds.

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Question 8 Please states the name of company or industry in Malaysia that offer bond for public ?
Standard

Chatered Bank Malaysia Berhad Cagamas Sdn. Bhd

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Question 9 What is the benefit of purchasing bond if company to preferred stock ?

Investor get

constant or fixed benefit income without concerned the company profitability

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Bond holders have prime

ownership in apportion acquisition and claims if company declares bankruptcy

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Question 10 What is the cheapest bond price can be found in Malaysia ?

Premium Saving Certificate (Sijil

Simpanan Premium). Age 12 years old and above can purchase and minimum saving is RM 10/unit

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Question 11 Please show the sample of bonds certificate that available in Malaysia

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Sample Bond Certificate

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Sample Bond Certificate

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Question 12 In Malaysia, who should be contacted if you wish to purchase the bonds ?
Bond market in Malaysia consist of

government and private sectors

Government issued by the government

through the national bank Malaysia

Private bonds known as private debt securities

and issued by private companies

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Question 13 What are the disadvantages of bonds

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Risk Disadvantages the primary disadvantage the risk factor which stems from never knowing how reliable the ratings system are Security Disadvantage the bonds are only as good as the borrowers ability to repay the bond. If they cannot repay the bond as stated initially, then it goes into default

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