You are a long-only bond manager and you wish to determine what your holding period return would be if you have a horizon value of 12 years (i.e. sell all bonds in your portfolio). Data related to your current portfolio holdings is presented in the table below:

Bond Current yearsCoupon YTMReinvestment_Rate

to maturity

A 15 10,5% 13% 8%

B 22 6,5% 11% 8%

C 35 9% 10,5% 7%

Assuming that you hold one of each bond, coupons are paid annually and each bond is priced assuming apar value of R100, calculate:

1. The current value of your portfolio

2. The future value of your portfolio in 12 years;

3. The HPR return over the 12 year horizon; and

4. The impact on HPR if at year 12, yields on all bonds have decreased by 1%.