a)A firm borrows $30,000 from the bank at 13% compounded annually to purchase some new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 4 years. i. Evaluate how much each annual payment will be? 4 marks) ii. Set up an amortization schedule for a S30,000 loan to be repaid in equal installments at the end of each year, of the next 4 years. 8 marks) (2 marks) b) ABZ Corporation issued new 20 year bonds on January 1990 the bonds sold at par (K1000) and paid a 12 % coupon annually i. What was the bond's price and current yield on January 1, 2000, assuming interest rates fell to 10%? 6 marks) ii. On January 1 2005 these bonds sold for K900 in the market. What was the YTM at that date? (5 mar 125 MARKS