Answer all four equally-weighted parts of the question below: A government bond with a par value of R1000, maturing in 6 years, offers an annual coupon of 10%, and a yield to maturity of 13%. PART A: What is the current value of the bond? Give your answer in Rands (R) correct to TWO decimal places. R 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. PART C: Given your results above, what is the convexity of this bond? Give your answer, correct to TWO decimal places. PART D: If this bond has a modified duration of 4 and yields increase by 100 basis points, the correction for convexity ((AP/P) will forecast that the bond price will decrease by what percentage? Provide your answer, in percent (%), correct to TWO decimal places. % You do not have to indicate the negative with or (); simply provide your answer in percent (%6)