Munshi Khan wishes to establish a fund that will make it possible for him to withdraw Rs.16,000 at 8 annual intervals beginning on January 1,2001. The fund is to be established by 5 equal deposits, the first to be made on January 1, 1996. Interest at 5% compounded annually will be earned on the balance on deposit. What are the annual deposits? Question No.2 Marks: 10 (5+5) a) On December 31, 20X2, the shares of Alfalah Incorporation closed at Rs 20. The company subsequently paid a year end dividend in each of the years 20X3 through 20X7 as follows: 20X3 20X4 20X5 20X6 20X7 Rs 1.00 Rs 1.00 Rs 1.10 Rs 1.25 Rs 1.25 Suppose you had purchased a share of Al-Falah Incorporation on December 31,20X2. Find the price at which you must sell your share at 20X7 year end in order to realize an annual compounded total rate of return of 10 percent on your initial investment. b) The Acme Company paid a Rs 2.50 dividend per share at the end of the year. The dividend is expected to grow by 10% each year for next 3 years, and the stock's market price per share is expected to be Rs 50 at the end of the third year. Investor's require rate of return of 14%. At what price per share should the Acme stock sell? Question No.3 a) Describe: 1) Call Provisions. 2) Put Provisions 3) Consol. 4) Current Yield. 5) Zero Coupon Bond. Marks: 12 (5+7) The Palatin Paper Package Corporation's Rs 1000 bonds that pay a coupon rate of 8 percent in a single annual payment and mature in 20 years are selling for a current market price of Rs.1050. What does an investor in these bonds earn in terms of: 1) Yield to Maturity. 2) Current Yield. 3) Nominal Yield.