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I need an answer to this question 1. On a personal level, your uncle is very worried about his lack of retirement planning. He is

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I need an answer to this question

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1. On a personal level, your uncle is very worried about his lack of retirement planning. He is 45 and would like to retire at the age of 65; i.e. in 20 years time. He has budgeted that he will need R15 000 per month, starting at the end of the first month after retirement date. He would like the planning to assume that he will live to 90 years of age, i.e. that he will receive monthly pension amounts for 25 years after retirement. Assume that interest is 12% p.a. compounded monthly. REQUIRED How much does your uncle need to invest per month, starting at the end of the current month and ending at retirement date (age 65), in order to realise his planned retirement pension? Show your working. ( 4) 2. Your uncle owns RSA government bonds with a nominal value of R100 000. The bonds have five years remaining until maturity. The coupon rate is 9% payable bi-annually. The yield to maturity (YTM) required by investors on similar bonds is 10% p.a. REQUIRED Value the bond today, assuming that a coupon payment has just been received. (3) 3. Best-Bargain (Pty) Lid requires a bank loan. Bank A is offering a loan at 13% p.a. compounded monthly. Bank B is offering an interest charge of 15% p.a. compounded quarterly. REQUIRED Which credit loan should your uncle take? Show your workings. (3) 4. Best-Bargain (Pty) Lid has an investment in 8% cumulative preference shares in Paarl (Pty) Lid. This investment is sitting at a cost of R200 000 in the current balance sheet. Paarl (Pty) Lid has been under financial pressure and has not paid dividends for the last two years ended 28 February 2020. However, the managers at Paarl (Pty) Lid have devised recovery plans, which are expected to result in them resuming dividend payments in February 2022. Investments in preference shares of a similar risk class are requiring a return of 9% p.a. REQUIRED Value the investment in preference shares, as at 28 February 2020. (3)

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