Question: Section B (30 marks) Q1. Briefly differentiate between current account and capital account with the help of suitable examples. Justify your opinion regarding the

Section B (30 marks) Q1. Briefly differentiate between current account and capital account with the help of suitable examples. Justify your opinion regarding the importance of balance of payment account to a country. (15 marks) Q2. Consider a semi-annual coupon bond having a face value (principal) of $1,000 and pays a coupon of 8% per annum. The current price for the bond is $983. What is the 18-month forward price for this bond assuming that the interest rates for all maturities of 18 months or less is 10%? (15 marks)

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