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QUESTION 5 Time value of money [11 MARKS] 125 (5) PU You decided to invest R20 000 in a bank account over five years that
QUESTION 5 Time value of money [11 MARKS] 125 (5) PU You decided to invest R20 000 in a bank account over five years that is paying -5% interest per year. Calculate your interest if interest is compounded annually . Also, how much will you have accumulated if the interest was compounded monthly instead of annually? moutbeye? bond 2er coupon 2 pval Explain what a zero-coupon bond is, and calculate the present value of the following zero-coupon bond with a par value of R100: fara vell paint com ley Iyer for Vale/ Par values Fatwerele The bond is to be redeemed in five years' time and the interest is compounded semi-annually. The current market rate for such bonds is 8%. 5.2 (6)
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