John wanted to invest in Segambut bopds, however, he is still new in the industry. Currently, Segambut bond is selling ak RM874 with the current par value of RM1,000 bond, with the coupon rate at 5% semi-annualy with year to go before maturity He was also thinking to buy a new issle Kiara bonds currently selling at par value of RM1,000 with coupon payment of 12% a year with 7-year maturity Recommend to John which bond is the better option for him to buy, given both of them carry the same risk profile. (5 marks)
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