Question: A one year treasury bill which pays a face value of GHS 1000 in one year 's time can be purchased at GHS 900. Determine

A one year treasury bill which pays a face value of GHS 1000 in one year 's time can be purchased at GHS 900. Determine the yield to maturity I. From the cure rate as computed in question (I) above the buyer expects the rate to decline to 5% .What is the expected capital gain ? From the result we n question (ii) above determine the total percentage return on the bond. iv. By using the information above , compute the critical interest rate and discuss the diversification that will occur in A. Mention and explain the four 4 objectives of monetary policy. B. In your own words,explain that monetary policy is all about. C. What will be the effect the following on the money market ,use the appropriate diagram: I. The bank of Ghana decides to sell Treasury bills in the Open Market Operation ii. A reduction in the required reserves ratio by Bank of Ghanathe investor's portfolio

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