(b) Find the future value of $10,000 invested for 8 years at the following rates: i. 7.7% p.a. compounded quarterly ii. 4.4% p.a. compounded monthly iii. 1.1% p.a. compounded daily (3 x 1.5 marks = 4.5 marks) How many years will it take for an investment of $10,000 to grow to $20,000 if the interest rate is 7% p.a. compounded quarterly? (1.5 marks) (c) (c) An investment involves a monthly payment of $500 over 10 years. The payment is made at the end of every month. The interest rate is 8% p.a. compounded monthly. Determine the present value of the investment. (3 marks) (d) A zero-coupon bond will mature in 10 years. The interest is compounded semi- annually, and the bond's face value is $1,000. Currently the bond is selling in the market for $550. If an investor purchases the bond at current market price and then sells it for $650 after 2 years, determine the investor's realised yield. (3 marks) (b) The probability of returns from an asset are as follows: Probability Return 25% 10% 40% 8% 35% Determine the risk (i.e. standard deviation of returns) of the asset. 2% (4.5 marks) (c) If the risk-free rate of return is 2.2%, market risk premium is 17% and the beta of a portfolio is 1.4, determine the expected return of that portfolio. (1.5 marks)