4.2 Suppose a bond with a fixed coupon of 25% paid quarterly in March, June, September and December has a principal of 85 000 000 and the interest period runs from 31 July to 31 October. Calculate the coupon interest. (6)

4.3 Suppose a 78 000 000 sterling certificate of deposit priced at 12.5% is issued on 24 January and matures on 24 July. Calculate the coupon interest. (6)

4.4 Suppose a client has deposited US$ 7 million in a bank account and the applicable deposit rate is 12.6%. Using 360 days, calculate the interest on a three month (90 actual days) deposit. (6)

4.5 You invests N$ 15 000 for 9 years at 15% p.a. interest, how much money will you save if your interest is compounded continuously instead of quarterly. (6)