(c) A mutual fund has the following returns for the three years:

Year 1	Year 2	Year 3
10%	-3%	-3%

Calculate the geometric mean return for this three-year period. [4 Marks]

(d) Calculate the yield of maturity for an investor that has purchased a two-year bond for Rs 900. The bond will pay interest at 6% per annum for two years. The face value of the bond is Rs 1,600 and interest is paid quarterly [6 Marks]

Discount Factor

	1	2	3	4	5	6	7	8	9	10
8%	0.9259	0.8573	0.7938	0.7350	0.6806	0.6302	0.5835	0.5403	0.5002	0.4632
11%	0.9009	0.8116	0.7312	0.6587	0.5935	0.5346	0.4817	0.4339	0.3909	0.3522

(e) Describe the five steps (investment management process) that an investor should consider before making an investment. [10 Marks]