INV2601 ASSESSMENT 2 SEM 1 OF 2024 EXPECTED QUESTIONS AND ANSWERS
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Course
Financial Management
Institution
University Of South Africa (Unisa)
THIS DOCUMENT CONTAINS INV2601 ASSESSMENT 2 SEM 1 OF 2024 EXPECTED QUESTIONS AND ANSWERS . USE IT CORRECTLY AS AS A GUIDE AND FOR PRACTICE TO OBTAIN MORE THAN 75%
Started on Friday, 12 April 2024, 9:23 AM
State Finished
Completed on Friday, 12 April 2024, 11:10 AM
Time taken 1 hour 46 mins
Question 1
Complete
Marked out of 1.00
For a zero-coupon bond, the lack of coupon payments before maturity eliminates the … risk.
a. price
b. credit
c. yield curve
d. reinvestment
, Question 2
Complete
Marked out of 1.00
Calculate the yield to call of a 16% semi-annual paying bond with a par value of R1 000. The bond matures in 25 years, has a
market price of R1 547.68, and a yield to maturity of 10%. The bond is callable by the issuer in 12 years at a call price of R1
413.96. The yield-to-call (YTC) is closest to …
a. 9.09%
b. 9.95%
c. 10.57%
d. 10.00%
Question 3
Complete
Marked out of 1.00
The current 1-year spot rate is 6.5%, the current 2-year spot rate is 8.5% and the current 3-year spot rate is 11.8%. The 1-year
forward rate two years from now is closest to …
a. 15.20%
b. 18.71%
c. 20.20%
d.
21.71%
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