please answer question 2

17:02 Alms.gimpa.edu.gh fund are GHC 2.15 million. If the total liabilities of the fund are GH 1.95 million and the outstanding shares issued is 24.5 million, compute the Net Asset Value (NAV) and WRITE THE VALUE IN YOUR ANSWER BOKLET. QUESTION 28: In the organizational structure of a mutual fund, the fund is a: A. Separate one-man enterprise B. Separate partnership of the managing partners C. Separate limited liability company. D. Combined one company of different mutual funds QUESTION 29: In a mutual fund, the Directors of the fund: A. Have the same authority and powers as Directors of a limited liability company B. Have more authority and powers than Directors of a limited liability company C. Have less authority and powers as Directors of a limited liability company D. Are the same as the fund managers QUESTION 30: Bank deposits are assets of customers and A. Assets of the bank B. Liabilities of the bank C. Earnings or income of the bank D. Expenses of the bank INSTRUCTIONS: ANSWER ANY FOUR QUESTIONS QUESTION 1: (a) A 13-year coupon bond pays a 12.7% coupon. The market discount rate is 10.5%. How much should the bond sell for as it price. Is this a discount or premium bond? b) Assume now that the bond in (a) is a semi-annual coupon bond. Using all other information in (a), compute its price. c) The ordinary shares of Afram Plains Limited just paid a dividend of GH 1.25. It is expected that dividends and income will grow at the same rate of 14.05% for two years and 10.3% for another two years. The growth rate will drop to a constant 7.5% after that. The company just paid a dividend of. If the cost of equity is 11.1%, compute its price. d) What is the market value of a $1,000 face-value bond of 15 years with a 12 percent coupon rate when the market's rate of return is 8 percent? QUESTION 2: Mr. Kyei buys a GH 450,000 two-bedroom residential home at Devtraco to be paid over 15 years. The interest rate is 19.9 percent per annum. a). If Mr. Kyei deposits 20 percent of the value of the home and gets mortgage for the remaining amount, how much should he pay every year for the mortgage? b). Mr. Kyei wants to make monthly payments and pay it over 5 years instead, how much should he pay for the mortgage per month? c). Which is these two strategies is better for him? d). State four characteristics of a mortgage contract QUESTION 3: (a) You are the fund manager of a XYZ Fund Limited. The fund has a cash of GH 2.3 million and financial securities of GH 21.9 million. Liabilities are GH 16.9 million. Total issued shares outstanding are 12.7 million. Compute the net asset value of the mutual fund b) Generally, the price of a share of a mutual fund is its net asset value per share. Compute the net asset value per share. c) If the fund sells 500,000 more shares at the price you calculated in (b). How much extra cash was raised from the sale of the additional shares? a