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The Foreign Government Bond Fund charges a 2 . 5 % front end load. Sandeep has $ 2 0 , 0 0 0 to invest.
The Foreign Government Bond Fund charges a front end load. Sandeep has $ to invest.
a How much of his investment will be deposited in the bond fund? mark
b If the bond fund earns compounded annually for its first years, and Sandeep redeems his units,
what would Sandeep's annual compound return be on his original investment? Enter your answer as
a percentage to two decimal places. marks
c If the bond fund instead charged a back end load of whenever an investor redeems their units,
what would Sandeep's annual compound return have been on his original investment if he had
redeemed his units at the end of the third year? Enter your answer as a percentage to two decimal
places. marks
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