Question 4 ABSA Itd (Mini case study) For all questions, assume par value is R 1,000 and semiannual bond interest payments. a) A company in a line of business similar to ABSA recently issued at par noncallable bonds with a coupon rate of 5.8% and a maturity of 20 years. The bonds were rated Aaa by Moody's and AAA by Standard \& Poor's. What rate of return (yield to maturity) did investors require on these bonds if the bonds sold at par value? b) ABSA has one outstanding bond issue with a coupon of 8% which will mature in 5 years. The bond now sells for R1,141.69. What is the yield to maturity on this bond c) Suppose ABSA actually offers a coupon rate of 6% on its 20 year bonds, expecting to sell the bonds at par. What will happen to the price of a single bond with a par value of R1000 if the required yield on the bonds unexpectedly falls to 5% or rises to 7%