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Show all calculations *Show all formulae used in calculations * Round off to nearest four decimal places if necessary. (1) An investment has the following

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Show all calculations *Show all formulae used in calculations * Round off to nearest four decimal places if necessary. (1) An investment has the following data: (i) Calculate the cash return (8pts) (ii) Calculate Rate of return (8pts) (2) The following information is available for common stock in Borriston Ltd: (i) Calculate the expected return (6pts) (ii) Calculate the variance (6pts) (iii) Calculate the standard deviation. (6pts) (3) (a) Calculate the average rate of return (4pts) (b) Calculate the geometric rate of return (6pts) (c) What is average rate of return AND geometric rate of return indicating about the investment? (3pts) (4) A bond has a market price of $900 and coupon interest rate of 10% p.a. The bond pays interest semi annually and has a face value of $1,000. The bond will mature in 10 years. Calculate the yield to maturity Rate for the bond. (3pts) (5) A bond has a face value of $1,000 and coupon interest rate of 12% p.a. The bond will mature in 15 years and has a yield to market of 10% p.a. (a) Will the bond sell at a discount or premium? Justify (3pts) (b) Calculate the bond price. (6pts) (6) Lisa invested in a savings account that provides interest of 5% (nominal rate). Using an inflation rate of 3%; calculate the real return that is earned on the savings account. (5pts)

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