INVESTMENTS: FIXED INCOME ANALYSIS
ASSIGNMENT 01 SEMESTER 01 2023
ASSIGNMENT 01 (compulsory)
20 MULTIPLE-CHOICE QUESTIONS (20 marks)
DUE DATE: 30 March 2023
UNIQUE NUMBER: 876350
Work through lessons 1 to 4; then answer the following questions. Submit your
assignment via myUnisa.
QUESTION 1
A bond manager considers buying a five-year semi-annual bond, with R1 000.00 par value,
12% coupon rate and is currently trading at R937.00. Which one of the following is CLOSEST
to the yield of this bond?
a. 13.79%
b. 13.95%
c. 14.16%
FV = 1000
PMT = 60 (12% x R1000)
N =5 x 2 = 10
PV= 937.00
COMPT I/YR = 6.86*2 = 13.79%