Question 2 - Total 12 marks a) John is planning to save for his retirement over the next 30 years. To do this, he will invest $2,000 a month in equity and $700 a month in a bond account. The return of the stock account is expected to be 12 percent, and the bond account will pay 8 percent. When he retires, he will combine both investments into an account with a 7 percent return. How much will he withdraw cach month from his account assuming a 20-year period? (4 marks) b) Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond then? The YTM? (4 marks) c) You invested $1,000 in a mutual fund in the year 2013, which grew in value per year as shown in the table below: Year Ending Value 2013 $1,000 2014 1.127 2015 1.158 2016 2.345 2017 3,985 2018 4,677 2019 5.525 year 2013? What is the rate at which the fund has grown as at 2019, since your initial investment of $1,000 in the (2 marks) A firm's capital structure may consist of debt capital and equity capital. Why will a fimm have different elements of capital? Are there any benefits to the firm? (2 marks) d)