Notes: Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. Students must mention question number clearly in their answer. The work should be in your words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. No pictures containing text will be accepted. Support your Answers by APA references.

Questions: 1. Imagine you want to travel to US for your "graduation vacation" when you graduate from college in two years. How much money do you need to put aside right now to have $10,000 when you travel to US, assuming your bank's savings account yields a 6 percent interest rate? (Show your calculations)

2. Three cash flows of $3,125, $3,450, and $3,800 will be given to Ms. Marwa as a result of her investment. What will the future value of her investment cash flows be at the end of three years if she can earn 7.5 percent on any investment that she makes? (Show your calculations)

3. For computations of present or future values, the annual percentage rate (APR) is not the proper rate. Justify this assertion.

4. Faisal invested 40% of his portfolio into an investment with an anticipated return of 12% and 60% of his portfolio into an investment with an expected return of 20%. What is the expected return on Faisal's portfolio? (Show your calculations)

5. Discuss the different types of corporate bonds.