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Mr Samm is an investor and he want to invest in the bond market. Mr Samm wants to purchase a bond today, which is redeemable

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Mr Samm is an investor and he want to invest in the bond market. Mr Samm wants to purchase a bond today, which is redeemable in four years. Its nominal value is R125,880 and pays an annual coupon of 5% on the nominal value. You're required to: Flag question QUESTION1 Calculate how much Mr Samm pay today to purchase such a bond, if the required rate of return is 4% QUESTION 2 Calculate how much Mr Samm pay today to purchase such a bond, if the required rate of return is 5%

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