Question Two [Total 20 Marks) (i) Give a general reasoning explanation for the expression d = iv. (ii) Derive, by integration expression for (Tan- [2 marks] [3 marks] MTA/2020-p.2 (iii) A 90-day government bill was bought by an investor for a price of K90 per 100 nominal. After 30 days the investor sold the bill to a second investor for a price of K94.50 per K100 nominal. The second investor held the bill to maturity when it was redeemed at par. Determine which investor obtained the higher annual effective rate of return. [3 marks] (iv) The force of interest, d(t), is a function of time and at any time t, measured in years, is given by the formula: (0.03 +0.005 ost