At the beginning of the year, Investor A requires an 8.5% discount rate for a 182-day Treasury bill (TB). The TB has a tender amount of R4 000 000. Furthermore, on April 1, Investor A purchases from the bank a R1 million 91-day negotiable certificate of deposit (NCD). On May 1, Investor A decides to sell the NCD to Investor B, who then sells the NCD on June 5. Market rates over the NCD investment period were 8.5% per annum on 1 April, 8.1% per annum on 1 May, and 7.6% per annum on 5 June.

4.1 Calculate the price (in rand percentage) that Investor A will bid for the TB. (1)

4.2 Calculate the discount amount on the TB. (1)

4.3 Determine the total consideration that Investor A will pay for the TB.(1)

4.4 Calculate the nominal yield of the TB. (1)

4.5 Calculate the maturity value of the NCD. (1)

4.6 How much did Investor A sell the NCD to Investor B for? (2)

4.7 What is the annual yield earned by Investor A on the NCD? (1)

4.8 Determine the amount at which Investor B sells the NCD. (2)

4.9 Calculate the annual yield earned by Investor B on the NCD. (1)