Question: 1: Indicate the nominal value to be purchased for the target defined 2: Indicate the effective value to be purchased for the target defined 3:

1: Indicate the nominal value to be purchased for the target defined

2: Indicate the effective value to be purchased for the target defined

3: Indicate the annual amount of coupon in SAR that we will receive

4: How much could be lost in value (effective value) in case of an immediate 0.10% increase in the YTM?



Settlement date: 15th OCTOBER 2023, we are going to buy Saudi bond.

Coupon: 2.72% (semiannual 30360, coupons are paid every 26 October and 26 April)

Maturity: 26th April 2026

Yield to Maturity: 5,40%

You are willing to obtain the following cash flows (SAR) just from the coupons, apart from the principal:

Expected cash flows

200.000 200.000 Year 2023 200.000 Year 2024 200.000 200.000 Year 2025 200.000 Year 2026

200.000 200.000 Year 2023 200.000 Year 2024 200.000 200.000 Year 2025 200.000 Year 2026

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