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Exam (elaborations)

INV3702 Assignment 01 Semester 1 2023 Detailed Solutions

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Uploaded on
March 27, 2023
Number of pages
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Written in
2022/2023
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INV3702
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%

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