INV2601
ASSIGNMENT 2 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 16 APRIL 2025
, Assignment no Due date Assignment content
02 16 April 2025 Study units 10 to 14
Answer the following questions and submit your answers at https://my.unisa.ac.za
by the due date. Please submit your answers in a PDF format only (single spacing
– Arial font 12). Show all the calculations.
Question 01 (subtotal = 20)
Use the information below to answer the questions.
A six-year annual bond with a par value of R100 has an 8.5% yield to maturity and a
coupon rate of 6%. If there is a 100 basis points change in the interest rate,
1. Calculate the effective duration and the effective convexity. Clearly show the changes
of present value in a tabular form. (20)
Question 2 (subtotal = 14)
1. Discuss any five (5) terminologies that are used for workings and applications of
options. (10)
2. Differentiate between interest rate swap and currency swap. (4)
ASSIGNMENT 2 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 16 APRIL 2025
, Assignment no Due date Assignment content
02 16 April 2025 Study units 10 to 14
Answer the following questions and submit your answers at https://my.unisa.ac.za
by the due date. Please submit your answers in a PDF format only (single spacing
– Arial font 12). Show all the calculations.
Question 01 (subtotal = 20)
Use the information below to answer the questions.
A six-year annual bond with a par value of R100 has an 8.5% yield to maturity and a
coupon rate of 6%. If there is a 100 basis points change in the interest rate,
1. Calculate the effective duration and the effective convexity. Clearly show the changes
of present value in a tabular form. (20)
Question 2 (subtotal = 14)
1. Discuss any five (5) terminologies that are used for workings and applications of
options. (10)
2. Differentiate between interest rate swap and currency swap. (4)
