Discuss FOUR (4) factors Maybank would consider before issuing bonds on the Singapore Exchange's (SGX) bond market. Malayan Banking Bhd (Maybank) has issued US$28 million (about RM115.81 million)worth of bonds, which were listed today on the Singapore Exchange's (SGX) bondmarket. In a filing with the SGX yesterday (April 8), Maybank said the notes, whichwere issued yesterday, would be due in 2028 and would pay an annual interest rate of1.8%."The notes will be quoted and traded in US dollars," Maybank said, without specifyinghow proceeds from the bond sale will be used. The lead managers and bookrunners ofthe notes are Maybank Kim Eng Securities Pte Ltd and The Hongkong and ShanghaiBanking Corp Ltd, according to Maybank.For comparison, Maybank's US$28 million bonds' annual coupon of 1.8% is higherthan Malaysia's overnight policy rate (OPR) of 1.75%. Bank Negara Malaysia's (BNM)Monetary Policy Committee (MPC) on March 4, 2021 decided to maintain the country'sOPR at 1.75%, the central bank said in a statement that day. "The MPC considers thestance of monetary policy to be appropriate and accommodative," said BNM.Among major corporate bond issuers, Petroliam Nasional Bhd (Petronas) said in astatement on March 17, 2021 that Petronas had priced a US$600 million single-trancheseven-year note issued by its wholly-owned subsidiary Petronas Energy Canada Ltd(PECL) at 85 basis points over the seven-year US Treasury to yield 2.112% a year."Proceeds will be utilised by PECL to fund its continued development and productionactivities, debt refinancing and for general corporate purposes," Petronas said.On Bursa Malaysia today, Maybank's share price rose two sen or 0.24% at 11.57am toRM8.30, which gives the group a market capitalisation of about RM93.29 billion.Maybank has 11.24 billion issued shares, according to the group's latest quarterlyfinancial report.

Exchange rate: It refers to the rate at which the economies exchange with one another. The more the…

Answered: Discuss FOUR (4) factors Maybank would…

Business

Economics

Discuss FOUR (4) factors Maybank would consider before issuing bonds on the Singapore Exchange's (SGX) bond market

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Four years after the issue of a $10,000, 9.9% coupon, 20-year bond, the rate of return required in the bond market on long-term bonds was 8.2% compounded semiannually. b. What capital gain or loss (expressed in dollars) would the original owner have realized by selling the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Capital (Click to select) of $[
1. A series of equal quarterly receipts of $5000 extends over a period of five years. What is the estimated present worth of this quarterly payment series at 8% interest compounded continuously? 2. You have just inherited $200,000 and wisely decide to invest your money in a diversified portfolio with your investment firm. You financial advisor tells you that you can earn an average of 8% interest per year on your investment. You tell your advisor that you want to retire as soon as your account balance reaches S1,000,000. If you do not add or take money out of your account and interest does not fluctuate, how long, rounded to the nearest year, will it take before you have a S1,000,000 balance?
2. Daniel invests $5,000 today into an investment account. Five years from today, he will begin investing $3,000 every year for ten years. He will then invest $6,000 for the five years after that. With an annual compounding interest rate of 3%, what is the valuation in the account twenty years from today? m
Suppose a ten-year bond with a $10,000 face value pays a 5.0% annual coupon (at the end of the year), has 2 years left to maturity, and has a discount rate of 6.5%. Which of thé following would give you the present value - i.e. the price – of the bond? Select one: a. Present Value = Price = $10,500/(1.065)² %3D %3D b. Present Value = Price = [$500/(1.065)] + [$500/(1.065)²] + ... + [$500/(1.065)NI, where N=00 c. Present Value = Price = [$500/(1.065)] + [$500/(1.065)²] +I$10,000/(1.065)²] %3D d. Present Value = Price = [$500/(1.065)] + [$500/(1.065)²]
You consider paying equal amounts of money into a bank account at regular intervals for 10 years. As a result of your research, you find out the following payment plans:a. To pay $500 at the end of each month for a period of 10 years with an interest rate 12% compounded monthly.b. To deposit $1500 at the end of every three months with an interest rate of 12% compounded continuously for 10 years.c. To deposit $1000 at the end of every two months with an interest rate 12% compounded quarterly for 10 years.For each of these payment plans, calculate the amount of money that will be accumulated in your account at the end of the 10th year (including the last payment). Which alternative would be more advantageous for you?
Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,035.05. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
Suppose Asian Beauty, a Japanese and Korean style women’s cosmetics retail company in downtown Toronto, is to issue $3 million 30-year bonds with an 8 percent annual coupon payment. Assume the required return 10 percent, and the corporate tax rate is 35 percent. What will be repayment in the maturity?
Many retirement funds charge an administrative fee equal to 0.25% on managed assets. Suppose that Alexx and Spenser each invest $4,000 in the same stock this year. Alexx invests directly and earns 4% a year. Spenser uses a retirement fund and eams 3.75%. If Alexx and Spenser leave their investments in place for 30 years, with annual compounding of the interest, how much more will Alexx have than Spenser at the end of the 30-year period? Alexx will have more than Spenser after 30 years. (Enter your response rounded to two decimal places.)
QUESTION 3 1.1) Calculate the future value (rounded to the nearest whole number) of monthly deposits of R500, made for 30 years, at a nominal interest rate of 4% p.a. Then find the value of the monthly withdrawals (rounded to the nearest whole number) that can be made from this annuity for a period of 20 years, at a nominal interest rate of 5% p.a. Future value of monthly deposits = Monthly withdrawal =
The current interest rate on a 10-year coupon bond (with face value = $1,000 and annual coupon rate = 3.25%) is 1.31%. The buyer of this bond will receive $ _________ (keep one digit after the decimal point) payment from the bond issuer every year before maturity while holding the bond.
12. Brock Lee decided to sell his stock due to the recent market turbulence and instead put the entire amount of $100,000 into a savings account that promises to pay him annual compound interest of 4%. a. How much money will Mr. Lee accrue if he leaves it all in the bank for 1, 8, or 20 years? b.If Mr. Lee finds a different bank that promises to pay him 4% per year but compounds quarterly, rework part (a) using this new information.
QUESTION 1 Suppose you have the possibility to invest your money in a savings account that earns 6% interest compounded monthly. If you deposit $1,000 every month for 10 years, what would be the future value of this series? $163,879.35 $276,437.88 $267,501.39 $160,978.35