a. Who are the winning bidders? b. How much of the security will be allocated to each winning bidder? c. If this auction is a multiple -price auction, at what yield will each winning bidder be awarded the security? d. If this auction is a single -price auction, at what yield will each winning bidder be awarded the security? Question No.12 Assume an investor has a four year investment horizon and needs to invest Br. 500,000 today. The investor has two alternatives. Alternative 1: Buy a four year instrument that pays interest of 12% per annum compounded quarterly. Alternative 2: Buy a one year instrument that pays interest of 8% per annum compounded quarterly and when it matures reinvests the proceed in another three year instrument that pays interest semiannually. Suppose further that the investor's expectation of the three year interest rate one year from now is 16% per annum on a bond equivalent basis. Required: 1. Calculate the implied forward rate. 2. Which alternative do you recommend to the investor if the investor is willing to take advantage of differences between expectations and forward rates? Question No.13 Consider a bond with term to maturity of 5 years, a par value of Br. 1000, annual interest payment and a coupon interest of 12% annually and the spot rates are as follows: Term Spot Rate 1 year 9% 2 year 9% 3 year 10% 4 year 11% 5 year 11% Required: 1 \"charming fln nrina n'F Hm: l1nnr]