Question THREE (a) James Bond, a customer of ADB borrowed GHS80,000 from his bank at the rate of 23% for four years. If the loan is to be paid on equal installment over four years; i. Determine the annual installment payment (2 marks) ii. Prepare loan amortization schedule for the repayment of the loan (6 marks) (b)Jack & Jay is growing steadily and investors expect both the stock price and the dividend to increase at 8% per year. Three rational investors - Kojo, Kosi and Ami plan to hold Jack & Jay stock for 1, 2 and 3 years respectively. Next year's stock price is estimated at $81. Jack & Jay pays $3 dividend. Calculate the PV of the stock at each of the time horizon; assuming the expected return required by the investors is 12%. (7 marks) (c) What is the difference between annuity and perpetuity? (2 marks) (d) Consider the table below with three different bonds issued by three different companies: Assuno threat toi yalermehrthy is % Bond Coupon Rate 15% Pemum bond 12% 10% Without doing any computation, indicate the type of bonds the companies issued (3 marks) A B