The managers of Easy Capital Plc want to add two debt instruments into their portfolio, but they are aware of the likelihood of interest rate fluctuations. They have resolved to invest in two instruments: the first one is a perpetuity bond and the second one matures in 4 years. Both instruments have a par value of R1000, an annual coupon rate of 8.5% and are currently yielding 9%. Required: conduct the necessary calculations and fill in the missing information. a) The current prices of the perpetual bond and the 4-year bond are Choose... respectively. b) The durations of the perpetual and the coupon-paying bonds are Choose... respectively. The current prices of the perpetual bond and the 4- Choose... respectively. Choose... R1000 and R1340 the perpetual and the coupon-pay R1000 and R983.80 R944.44 and R1085 respectively. R944.44 and R1000 R944.44 and R983.80 R983.80 and R944.44 appen to increase by 50 basis poi R1000 and R768.64 obtaining the two debt instruments, the duration rule indi prices of the perpetuity bond and coupon-paying bond we Choose... v respectively. Choose... respectively. b) The durations of the perpetual and the coupon-paying bonds are Choose... hry respectively. Choose... 13.5 and 4 years appen to increase by 50 basis points immediately a 12.0 and 3.55years 12.11 and 4 years instruments, the duration rule indicates that a char 12.11 and 3.55years 13.5 and 3.55years bond and coupon-paying bond would be 13.5 and 3.13 years 12.11 and 3.13 years respectively. c) If interest rates happen to increase by 50 basis points immediately after obtaining the two debt instruments, the duration rule indicates that a change in prices of the perpetuity bond and coupon-paying bond would be Choose... respectively. d) Assume that after 1-year, Easy Capital Plc managers have been informed that the 4-year bond has changed to a zero-coupon bond for the remaining time and the managers subsequently decide to form a bond portfolio comprising of the perpetual bond and the new zero-coupon bond. If Easy Capital Plc managers target a duration of exactly 8 years, then their investment proportions in the perpetual bond and the zero-coupon should be choose... respectively. c) If interest rates happen to increase by 50 basis points immed obtaining the two debt instruments, the duration rule indicates that prices of the perpetuity bond and coupon-paying bond would be Choose... my respectively. Choose... 6.19% and 1.63% -5.56% and -1.63% er 1-year, Easy Capital Plc managers have be -1.63% and -5.56% as changed to a zero-coupon bond for the re -5.56% and -1.63% -6.19% and -1.83% sequently decide to form a bond portfolio cor 1.63% and 5.56% -6.19% and -1.63% e new zero-coupon bond. If Easy Capital Pla -5.56% and -1.83% -5.56% and -1.44% actly 8 years, then their investment proporti perpetual bond and the zero-coupon should be choose... prices of the perpetuity bond and coupon-paying bond would be Choose... respectively. informed ining time Choose... d) Assume that after 1-year, Easy Capital PL 54.88% and 45.12% 50.68% and 49.32% that the 4-year bond has changed to a zero-coy 51.98% and 48.02% 55.56% and 44.44% and the managers subsequently decide to form 49.32% and 50.68% 47.62% and 52.38% perpetual bond and the new zero-coupon bond. 42:11% and 57.89% 50.00% and 50.00% target a duration of exactly 8 years, then their 45.12% and 54.88% perpetual bond and the zero-coupon should be Choose... ising of the nagers in the respectively