Exam (elaborations)

FIN2601 ASSESSMENT 2 2024 SEMESTER 2 Ella purchased a zero coupon bond with a par value of R1 000 and a maturity of 20 years, for R380. If the yield to maturity on the bond remains unchanged, what will the price of the bond be six years from now? 1. R380,

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Course
Financial Management (FIN2601)

Institution
University Of South Africa (Unisa)

FIN2601 ASSESSMENT 2 2024 SEMESTER 2 Ella purchased a zero coupon bond with a par value of R1 000 and a maturity of 20 years, for R380. If the yield to maturity on the bond remains unchanged, what will the price of the bond be six years from now? 1. R380,65 2. R507,98 3. R508,07 4. R550,23

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Uploaded on August 9, 2024
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Type Exam (elaborations)
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financial management fin2601

Institution
University of South Africa (Unisa)
Course
Financial Management (FIN2601)

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,8/9/24, 1:55 PM Assessment 2: Attempt review

FIN2601-24-S2  Welcome Message  Assessment 2

QUIZ

Started on Friday, 9 August 2024, 1:28 PM
State Finished
Completed on Friday, 9 August 2024, 1:34 PM
Time taken 6 mins 7 secs
Marks 20.00/20.00
Grade 100.00 out of 100.00

Question 1
Complete

Mark 1.00 out of 1.00

Deserved Dish, a subsidiary of Basket of Gold Events, finds itself at a pivotal juncture in its growth trajectory. With a
substantial allocation of R5 million for capital expansion in the upcoming year, the management of Deserved Dish is
confronted with a critical decision regarding investment strategy. Recognizing the imperative to diversify risk and maximize
returns, the company aims to select from two potential investment opportunities.

Probability of occurrence Rate of return

Project 1 Project 2

30% 14% 8%

40% 10% 16%

30% 8% 22%

You are required to calculate the expected return for these two projects.

1. Project 1 = 3,53% ; Project 2 = 5,13%

2. Project 1 = 10,60%; Project 2 = 15,40%

3. Project 1 = 8,20%; Project 2 = 8,80%

4. Project 1 = 2,45%; Project 2 = 6,89%

https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=20731011&cmid=846383 1/15

, 8/9/24, 1:55 PM Assessment 2: Attempt review

Question 2

Complete

Mark 1.00 out of 1.00

A company has the opportunity to invest in one of three possible investments. The financial analysts predict the following
possible outcomes for the three investments:

Outcome Probability Investment C: Investment D: Investment E:
Expected return Expected return Expected return

Pessimistic 30% 2% 8% 6%

Most likely 40% 10% 10% 8%

Optimistic 30% 18% 12% 11%

Calculate the range of returns for the three investments.

1. Range of outcomes: C 8%; D 2%; E 3%

2. Range of outcomes: C 20%; D 20%; E 17%

3. Range of outcomes: C 1%; D 2%; E 3%

4. Range of outcomes: C 16%; D 4%; E 5%

https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=20731011&cmid=846383 2/15

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Exam (elaborations)

FIN2601 ASSESSMENT 2 2024 SEMESTER 2 Ella purchased a zero coupon bond with a par value of R1 000 and a maturity of 20 years, for R380. If the yield to maturity on the bond remains unchanged, what will the price of the bond be six years from now? 1. R380,

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