receive R52991 in two years time and you can earn an interest rate of 8% per annum compounded annually how
much in rands (no cents) should you invest today?
Answer: 45431
Question 17
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Since a treasury bill is a short term government security the treasury bill rate is part of the bond market.
True
False
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Question 18
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The coupon interest rate is interest rate the issuer promises to pay the bondholder.
True
False
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,Question 19
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The treasury bill rate is the interest rate indicate on the treasury bill.
True
False
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Question 20
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If a 12 month bill with a face value of R99 000 is sold for R94 000 the discount is R 5000 and the discount
rate is 5.1 % (one decimal). The yield or interest earned by the holder of the bill is 5.3 % (one
decimal).
, S2 Welcome Message Assessment 5
QUIZ
Question 11
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You can be wealthy without having a lot of money.
True
False
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Question 12
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Since income is paid in a monetary unit money and income is the same thing.
True
False
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Question 13
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Based on the following information calculate the total interest paid in rands (no cents) at the end of the period:
Present value: R7214
Simple interest rate: 10%
Period: 5 years
Answer: 3607
, Question 14
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Based on the following information calculate the total interest paid in rands (no cents) at the end of the period:
Present value: R40 000
Compound interest paid annually: 5%
Period: 2 years
Answer: 4100.00
Question 15
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Based on the following information calculate the total interest paid in rands (no cents) at the end of the period:
Present value: R46 000
Compound interest paid annually: 3%
Period: 2 years
Answer: 2801
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