) Explain with example the difference between simple interest rate and compound interest rate? Q) What is Liquidity preference theory and how does it work? Q) Describe the types of money market instruments Q) Illustrate how the types of instruments involved in Capital Market differ from money market Q) What are Bonds? And explain the categories and characteristics of Bonds? Q) Year Project A Cumulative Project B Cumulative Cash Flow Cash Flow Cash Flow Cash Flow 0 -400.00 -400.00 -575.00 -575.00 1 95.00 -305.00 150.00 -425.00 2 110.00 -195.00 200.00 -225.00 3 118.00 -77.00 250.00 25.00 4 125.00 48.00 275.00 300.00 5 140.00 188.00 230.00 530.00 6 150.00 338.00 180.00 710.00 a. NPV@10% b. IRR c. Payback Period d Kingdom) Accessibility: Investigate Focus