PART A FOUR QUESTIONS ANSWER THREE Question 1 a) Aston Education complex has a target of GHC200,000 in 15 years to own a branch of the school in another town. How much should be deposited in a bank account today if they could earn 8% per annum? Major Topic Score Bloom's Designation Time Value of Money 7 AP b) corporate bonds and government bonds are both debt instruments traded in the capital market. However, a corporate bond is considered to have a higher risk than a government bond. Justify the differences in risk. Major Topic Scor Bloom's Designation EV Capital Market 6 Efficiency c) Amy construction Ltd imports goods from Chicago to the value of $90,000. Payment is cash on delivery. What is the cost in sterling of the purchase, given that the exchange rate quote $/ 1.3500 - 1.4500. Where 1.3500 is the bid price and 1.4500 is the ask price. Major Topic Score Blooms Designation AP Foreign Exchange 7 Market TOTAL SCORE: 20 MARKS