Question Two (25marks) a) In not more than one 1 page, explain what we mean by a Treasury bill, a certificate of deposit and commercial paper. How do you assess the essential difference between the three classes of securities? (18 marks) b) Kofi Brokeman, an investor, has purchased an asset for GH32 000 at the beginning of the 2019. This investment is worth, GH46 000 at the end of June 2020. What is the Ghana Cedi return and annualized rate of return for the investment? ( 7 marks)

Question Three (25marks) Assuming Kofi Karikari company Ltd decides to enter into the market to raise additional capital to finance their loses before selling the company. In not more than two pages, discuss the various orderly processes in raising capital from the primary market. (25 marks)

Question Four (25 marks) a) Distinguish between the following: i. Primary market and secondary market (5 marks) ii. Money market and capital market (5 marks) iii. Fixed income security and convertible security (5 marks) iv. Systematic risk and Unsystematic risk (5 marks) v. Equity market and Debt market ( 5 marks)

Question Five (25marks) a) Depository Institutions and Other Financial Corporations accept monetary deposits from savers and investors, and then lend these deposits to borrowers. Both the depositors and borrowers benefit from the services they provide. In Ghana, specialised deposit-taking institutions carry on specific businesses Required: List ten (10) businesses depository institutions can carry on without violating any regulation or Act or law of bank of Ghana. (5 marks) b) Adzoa Smart is concerned about the safety of the money in her savings account. Which type of depository institution should she choose? ( 6 marks) c) Abena wants to be able to use funds in her checking account but finds going to the bank to withdraw cash to be inconvenient. She would like a more effective way to access her checking account funds. What would you suggest she do? ( 7 marks) d) State two major types of depository institutions in Ghana and explain the key differences between them ( 7 marks)

Question Six ( 25 marks) a) Explain the following concepts in relation to bonds: i. Coupon. ( 1 mark) ii. Maturity date. ( 1 mark) iii. Yield to maturity. (1mark) iv. Current yield (1 mark) v. Premium price (1 mark) vi. Discount price (1 mark) b) State and explain four (4) importance of bond markets. ( 8 marks) c) Do you agree with the assertion that long term loans are more beneficial than short term loans? If yes why? OR If No why? What types of participants are in the capital market?