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thanks (c) A mutual fund has the following returns for the three years: Year 1 10% Year 2 -3% Year 3 -3% Calculate the geometric

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(c) A mutual fund has the following returns for the three years: Year 1 10% Year 2 -3% Year 3 -3% Calculate the geometric mean return for this three-year period. [4 Marks] Page 2 of 5 (d) Calculate the yield of maturity for an investor that has purchased a two-year bond for Rs 900. The bond will pay interest at 6% per annum for two years. The face value of the bond is Rs 1,600 and interest is paid quarterly. Discount factor 1 2 3 4 5 6 7 8 9 10 8% 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 11% 0.9009 0.8116 0.7312 0.6587 0.5935 0.5346 0.4817 0.4339 0.3909 0.3522 [6 Marks]

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