Question 02 i. Required return of different maturities as well as different securities with the same maturity are different. Why? Explain your answer. (04 Marks) ii. Suppose you sell a land at Rs 10 million that you bought ten years back at Rs.1 million. How much is the interest earned per annum? (04 Marks) iii. Suppose you plan to accumulate Rs.10 million at the end of 6 years and deposit equal amounts at the beginning of each year and an additional deposit of Rs. 2 million at the end of year 3. If the intermediary agrees to pay 12% interest per annum? a. How much is the value of a deposit? b. What is the total amount of interest earned? (06 Marks) iv. Suppose you borrow Rs 12 million that is to be paid with 10 equal annual instalments. The interest rate charged is 12% compounded quarterly. a. How much is the value of an instalment? b. After paying instalments for 5 years you decide to settle the outstanding balance of the long at the end of year 6. How much should be paid? (06 Marks) (Total 20 Marks)