A government bond with a par value of R1000, maturing in 5 years, offers an annual coupon of 9.5%, and a yield to maturity of 11.5%. PART A: What is the current value of the bond? Give your answer in Rands (R) correct to TWO decimal places. RAnswer...........
PART B: Use the table approach to determine the value on the right-hand side of the convexity calculation. That is, what is the sum of the discounted cash flows, multiplied by (t2 + t)? Provide your answer correct to TWO decimal places. Answer...............
