Investing in government bonds with fixed coupons in order to obtain regular cash flow for the next 3 years.

Settlement date: 15th OCTOBER 2023, we are going to buy Saudi bond.

Coupon: 2.72% (semiannual 30360, coupons are paid every 26 October and 26 April)

Maturity: 26th April 2026

Yield to Maturity: 5,40%

You are willing to obtain the following cash flows (SAR) just from the coupons, apart from the principal:

Expected cash flows

Q1: Indicate the nominal value to be purchased for the target defined Q2: Indicate the effective value to be purchased for the target defined Q3: Indicate the annual amount of coupon in SAR that we will receive Q4: How much could be lost in value (effective value) in case of an immediate 0.10% increase in the YTM?