QUESTION 1 Consider the three assets below: Asset A: A high yield corporate bond with a coupon rate of 8%, a face value of GHC 1,000, a current market price of GHC 950 , and a time to maturity of 5 years. Asset B: A government bond with a coupon rate of 5%, a face value of GHC 1,000, a current market price of GHC 1,050 , and a time to maturity of 10 years. Asset C: A municipal bond with a coupon rate of 4%, a face value of GHC 1,000, a current market price of GHC 980 , and a time to maturity of 15 years. Required Calculate the duration and volatility of the assets above. QUESTION 2 Suppose you paid GHC 8,450 for government of Ghana 182-day Treasury bills. The bills mature in 154 days and has a face value of GHC 10,000 . Required A. Determine the yield of the bill. B. Explain the compounding effect on the bill. QUESTION 3 On 20 April 2017 you purchased a four-month, GHC 120,000 negotiable certificate of deposit from Abbas Corp. Limited that will pay a 18.5\% annual interest rate. You sold the NCD on 19 June 2017 when interest rates demanded by investors were averagely 20.05%. Required Determine how much was paid to the seller of the NCD. QUESTION 4 The manager of Abam Spots has just realized that the spots needs GHC653.483 cash to meet its customers' requirements. The manager has, therefore, decided to sell part of spot's Treasury bill holding to Swedru Rural Bank for the amount. Swedru Rural Bank agreed to sell the bills back to Abam for GHC653,793 after five days. Required Calculate the repurchase rate for this agreement. QUESTION 5 Kingsley Limited has just paid a dividend of GHC0.65 and management has announced their intention of a dividend growth rate of 3.75% into the future. Investors expect a return of 16.3% on the shares of Kingsley Limited