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Issue Date May 16, 2016 Maturity Date May 16, 2028 Tenor 12 years Total amount applied for 1,884,301,000.00 Total amount offered 1,000,000.000.00 Total amount allotted

Issue Date

May 16, 2016

Maturity Date

May 16, 2028

Tenor

12 years

Total amount applied for

1,884,301,000.00

Total amount offered

1,000,000.000.00

Total amount allotted

1,162,913,000.00

Issue Yield

4.75%

Coupon rate

4.50%

Cut-off price

97.73

Range of successful bidders

125.00-97.73

Face value allotted to non-competitive applications

20,419,000.00

Based on the Auction Results provided, the bonds were issued at a yield (YTM) of 4.75%,

with a price of $977.30 (per $1,000 face value). Using your knowledge of bond calculations,

prove the accuracy of:

i. The Bond Price (based on the YTM of 4.75%) 8 Marks

ii. The Yield to Maturity (based on the price of $977.30). 6 Marks

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