SECTION B: Answer ALL FOUR questions 8. A pension fund expects to make payments of 100.000 per annum at the end of each of the next ten years. The rate of interest is 4% per annum effective. (a) Calculate the present value of the liabilities. (2 marks) (b) Calculate the duration of the liabilities. (3 marks) (Total 5 marks) 9. An investor borrows 150,000 and invests the money in a project that will provide a net income of 24,000 per annum payable in arrears for the next 20 years. Calculate the internal rate of return for the project. (Total 6 marks)