Question 1: (10 marks) 1. If you deposit $100 in one year, $200 in two years, and $300 in three years, how much will you have in three years? How much of this is interest? How much will you have in five years if you do not add additional amounts? Assume a 7% interest rate throughout. (3 marks) Bond has a face value of $100 with coupon rate of 14% paid semi-annually, the yield to maturity is 16%. what is the bond price? What is the effective annual yield on this bond? (3 marks) 2, 3. What is the expected return on this portfolio? What is the beta of this portfolio? Does the portfolio have more or less systematic riskthan an average asset? (4marks) Security Share A Share B Share C Share D Amount invested Expected return $1000 $2000 $3000 $4000 8% 12% 15% 18% Beta 0.8 0.95 1.10 1.40