QUESTION 1 The Botswana government bond: BW 001 is a level coupon bond as of January 1, 2002. This is a 6.375% coupon rate bond with coupons paid semi-annually and maturity period ending 31st December 2009. The yield to maturity is 5%, while the par value of the bond is $1000. Calculate the present value of the bond. (10 marks) QUESTION 2 Molapo Industries is expected to generate net cash flows of $5, 000,000 in the first year and $2, 000,000 for each of the next five years. The company can be sold for $10, 000,000 seven years from now. Comparable investments in the market earn 10 percent interest compounded annually. a. Calculate the present value of Molapo Industries. (15 marks) b. Calculate the NPV of the company if it cost $12 000 000 to acquire the company from current owners. (5 marks)BUSINESS STATISTICS