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4. Mr. Aballa recently invested in an attractive AAA rated Cribss Geneva five-year, 5% annual-pay bond at issuance for par value. Assuming a 30 basis

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4. Mr. Aballa recently invested in an attractive AAA rated Cribss Geneva five-year, 5% annual-pay bond at issuance for par value. Assuming a 30 basis point change in yield, what is Cribbs Bond's approximate convexity? (20% Marks) Mr. Gabriel Abdalla has recently decided to buy some investments in China and is using the S%P China BMI Index as his Benchmark to assess his Equity market valuations using the.. Gordon's and other acceptable models. Information retrieved from the latter reveal a below information. The S&P China BMI Index on 30th October 2018 was 358. Forecasted 12-months EPS for the composite is 18.00 RMB and the current annual dividend rate for the composite is 7.90 RMB. Assuming an 8% inflation-adjusted equity discount rate , a 30 year decline in dividend growth rates from an initial growth rate of 8.25% and a terminal sustainable growth rate to perpetuity of 4.25%

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