Assessments submitted on any other medium (including email) other than Google Class will not be considered. All answer sheets (Handwritten) are to be numbered. Write Name, Registration number, Class & Section, Course Name, and Date on the assessment answer sheet. This assessment is divided into two sections, Section A will be conducted on google forms through Google Class Section A is to be attempted at first and the time to complete Section A is 20 mins. Time to complete Section B is 100 minutes which comprised of 5 Questions and will be answered by the student on a separate answer sheet (total marks for section Bis 15 marks) Section B: Attempt all questions. Question 1: Mr. Rocky's is a 38 years old government employee, his income is $90,000 after tax, he often seeks potentional and secured investment opportunities, his broker has shown him two category of bonds. Each has a maturity of 10 years, a par value of $10,000, and a yield to maturity of 10%. "Bond A has a coupon interest rate of 7% paid annually. Bond B' has a coupon interest rate of 7% paid semi-annually. Requirements: a) Calculate the selling price for each of the bonds. b) What if, Rocky has $50,000 to imest, Judging on the basis of the price of the bonds, how many of either one could Rocky purchase if he were to choose it over the other? (Rocky cannot really purchase a fraction of a bond, but for purposes of this question, pretend that he can.) c) Calculate the yearly interest income of each bond on the basis of its coupon rate and the number of bonds that Rocky could buy with saving of 20% of his Annual net salary. d) Assume that Rocky will reinvest the interest payments as they are paid (at the end of each year) and that his rate of return on the reinvestment is only 10%. For each bond, calculate the value of the principal payment plus the value of Rocky's reinvestment account at the end of the 5 years. e) Why are the two clues calculated in part d different? If Rocky were worried that he would earn less than the 12% yield to maturity on the reinvested interest payments, which of these two bonds would be a better choice? (04 Marks) Cotton Assessments submitted on any other medium (including email) other than Google Class will not be considered. All answer sheets (Handwritten) are to be numbered. Write Name, Registration number, Class & Section, Course Name, and Date on the assessment answer sheet. This assessment is divided into two sections, Section A will be conducted on google forms through Google Class Section A is to be attempted at first and the time to complete Section A is 20 mins. Time to complete Section B is 100 minutes which comprised of 5 Questions and will be answered by the student on a separate answer sheet (total marks for section Bis 15 marks) Section B: Attempt all questions. Question 1: Mr. Rocky's is a 38 years old government employee, his income is $90,000 after tax, he often seeks potentional and secured investment opportunities, his broker has shown him two category of bonds. Each has a maturity of 10 years, a par value of $10,000, and a yield to maturity of 10%. "Bond A has a coupon interest rate of 7% paid annually. Bond B' has a coupon interest rate of 7% paid semi-annually. Requirements: a) Calculate the selling price for each of the bonds. b) What if, Rocky has $50,000 to imest, Judging on the basis of the price of the bonds, how many of either one could Rocky purchase if he were to choose it over the other? (Rocky cannot really purchase a fraction of a bond, but for purposes of this question, pretend that he can.) c) Calculate the yearly interest income of each bond on the basis of its coupon rate and the number of bonds that Rocky could buy with saving of 20% of his Annual net salary. d) Assume that Rocky will reinvest the interest payments as they are paid (at the end of each year) and that his rate of return on the reinvestment is only 10%. For each bond, calculate the value of the principal payment plus the value of Rocky's reinvestment account at the end of the 5 years. e) Why are the two clues calculated in part d different? If Rocky were worried that he would earn less than the 12% yield to maturity on the reinvested interest payments, which of these two bonds would be a better choice? (04 Marks) Cotton