COVID -19 has not only affected the health sector but the economy has a whole. The Zambian government has implemented health and economic measures to curb the spread of the pandemic as well as address the economic challenges;

i. With practical examples, explain in detail the financial challenges faced by corporations and individuals at the onset of the pandemic. (5 Marks)

ii. With the aid of a diagram, explain the effects of the financial challenges faced by corporations and individuals on liquidity in the economy. (5 Marks)

The Zambian Government approved a K8 billion ($439 million) COVID-19 bond economic stimulus package to alleviate the pandemic's impact on the economy. To this effect, the Central Bank issued K2.67 billion COVID-19 bond on the 27th of July, 2020. Assuming that the Central Bank issued a 5 years bond with par value of K100.00 at a price of K77.35 with a 11% coupon rate, advise, as an investment consultant a client who wants to invest K50,000;

i. The expected annualised fixed coupon income and yield rate on the bond (2 Marks)

ii. The present value of the investment (4 Marks)

iii. The Yield to Maturity rate of the bond (4