(Solved): Ex.2.36 You borrow R10 000 from a friend who needs you to pay back this amount (without interest) ...

Ex.2.36 You borrow R10 000 from a friend who needs you to pay back this amount (without interest) in 1 years time. As a student working a bar tending job on weekends you earn R1 500 a month. What percentage of your salary will have to invest at the start of each month for the next 12 months to pay back the loan? You are investing your savings in a bank account that earns interest at a rate of 2.4% p.a. Ex.2.37 Consider the R2023 government bond described in Section 2.1.1. You are told the bond was issued on the 22nd of June 2012 at a price of R99.81 per R100 nominal and will be redeemed at par at the end of February 2023. The bond pays semi-annual coupons at the end of August and February, with an annual coupon rate of 7.75%. The first coupon is paid at the end of August 2012. Show that the annual yield on this investment is 8.28%.