1. The next coupon data that follows the settlement date of a bond is 28 October 2018. The half-yearly coupon rate is the 7.375%. The accrued interest equals R5.49589%. If this is a cum interest case, the settlement date for this bond is:
(1) 14 June 2018
(2) 30 July 2018
(3) 29 August 2018
(4) 11 September 2018
(5) none of the above
2. An investment with an initial outlay of R500 000 generates five successive annual cash inflows of R75 000, R190 000, R40 000 and R180 000. The internal rate of return (IRR) is: (1)7.78% (2)9.48% (3)21.3% (4)27.0% (5) none of the above Please show calculations.