a. A bond pays its first half-yearly $1,000 coupon payment in March 2022 and the bond matures on March 2025. Face value is $50,000. Coupon rate is 4% p.a. paid half-yearly. Current market yield is 3% p.a. What is the bond value on September 2021?

b. Of the following asset classes, which one would be expected to have the highest standard deviation of returns?

1. government bonds
2. corporate bonds
3. shares
4. bank bills

c. Which of the following would not be included as a cash flow in the analysis of the purchase of a new non-current asset?

1. Reduction in total operating costs
2. Reduction in inventory
3. Book value of asset when project is complete
4. Salvage value of asset when project is complete