(2 marks) (b) A money market security has a par value of 10,000 and is expected to mature in 182days. Investors require 15%. Calculate the present value of this money market instrument (4 marks) (e) The data below relates to XYZ economy: Nominal interest rate -18% Inflation =5.5% Real interest rate=? (1) What is the difference between nominal interest rate and real interest rate? (2marks) (ii) From the given data (XYZ Company), determine the real interest rate using Irving fisher's classical approach (2marks) (d) Outline three (3) basic functions of derivatives in the financial market (6marks) (Total= marks 20) QUESTION THREE (1) What is financial innovations (2 marks) (ii) Identify four types of financial innovations in the Ghanaian financial markets. (2 marks) (b) Determine the price of a par value bond with a coupon rate of 8% and 5years to maturity. Investors require 11% returns. (6 marks) (e) With an aid of a well labeled diagram; explain TWO factors that cause an increase in interest rates in an economy. (Hint: Loanable fund theory) (4marks) (d) Securities can be classified as money market securities, capital market securities or derivatives (1) Differentiate between these three classifications (6 marks) (Total =20marks) QUESTION FOUR (a) Differentiate between Efficient Market Hypothesis and the Random walk Theory of financial markets. (4 marks) (b) Mention three levels of the efficient