Question 01: Amrinder Gill wishes to purchase an annuity contract that will pay him $7,000 a year for the rest of his life. The Philo Life Insurance Company figures that his life expectancy is 20 years, based on its actuary tables. The company imputes a compound annual Interest rate of 6 percent in its annuity contracts How much will Gill have to pay for the annuity? (4 Marks Question 02 Amritsar Motors' bonds have 10 years remaining to maturity. Interest is paid semi-annually, the bonds have a $1,000 par value, and the coupon interest rate is 8 percent. The bonds have a yield to maturity of 11 percent. What is the current market price of the bonds? (4 Marks] Question 03 Explain the relationship between the structural budget deficit and contractionary changes in fiscal policy with a diagram You only need to draw the diagram] [7 Marks)