value of GH10,000 at a coupon rate of 12% and a term to maturity of 10 years. The bond expects to pay coupons annually. Included in the bond indenture are call and sinking fund provisions. The required rate of return on the market for bonds with similar features is 18% per annum. Your boss had asked you to advice King Solomon based on the information he provided. Required a. Explain to King Solomon what financial markets mean and which three (3) financial instruments he can (4 marks) invest in. b. To the nearest cedi, how much must he save during each of the next 10 years (with equal deposits being made at the end of each year, beginning a year from today) to meet his retirement goal? (Note: Neither the (5 marks) amount he saves nor the amount he withdraws upon retirement is a growing annuity.) c. What will be the present value of the cost of 4 years of education at the time the daughter Daisy turns 18? (2 marks) d. What will be the value of the GH 7,500 that Daisy received from her grandfather's estate when she starts college at 18? (2 marks) e. If King Solomon is planning to make the first of 5 deposits one year from now, how large must each deposit be for him to be able to finance his daughter's college education? (2 marks) f. Explain to King Solomon what call provisions and sinking fund provisions are and how these provisions are expected to affect the risk of the bond (2 marks) g. Which value will you place on a bond of Zenzo Pharma Ltd? (3 marks) Total: 20 marks value of GH10,000 at a coupon rate of 12% and a term to maturity of 10 years. The bond expects to pay coupons annually. Included in the bond indenture are call and sinking fund provisions. The required rate of return on the market for bonds with similar features is 18% per annum. Your boss had asked you to advice King Solomon based on the information he provided. Required a. Explain to King Solomon what financial markets mean and which three (3) financial instruments he can (4 marks) invest in. b. To the nearest cedi, how much must he save during each of the next 10 years (with equal deposits being made at the end of each year, beginning a year from today) to meet his retirement goal? (Note: Neither the (5 marks) amount he saves nor the amount he withdraws upon retirement is a growing annuity.) c. What will be the present value of the cost of 4 years of education at the time the daughter Daisy turns 18? (2 marks) d. What will be the value of the GH 7,500 that Daisy received from her grandfather's estate when she starts college at 18? (2 marks) e. If King Solomon is planning to make the first of 5 deposits one year from now, how large must each deposit be for him to be able to finance his daughter's college education? (2 marks) f. Explain to King Solomon what call provisions and sinking fund provisions are and how these provisions are expected to affect the risk of the bond (2 marks) g. Which value will you place on a bond of Zenzo Pharma Ltd? (3 marks) Total: 20 marks value of GH10,000 at a coupon rate of 12% and a term to maturity of 10 years. The bond expects to pay coupons annually. Included in the bond indenture are call and sinking fund provisions. The required rate of return on the market for bonds with similar features is 18% per annum. Your boss had asked you to advice King Solomon based on the information he provided. Required a. Explain to King Solomon what financial markets mean and which three (3) financial instruments he can (4 marks) invest in. b. To the nearest cedi, how much must he save during each of the next 10 years (with equal deposits being made at the end of each year, beginning a year from today) to meet his retirement goal? (Note: Neither the (5 marks) amount he saves nor the amount he withdraws upon retirement is a growing annuity.) c. What will be the present value of the cost of 4 years of education at the time the daughter Daisy turns 18? (2 marks) d. What will be the value of the GH 7,500 that Daisy received from her grandfather's estate when she starts college at 18? (2 marks) e. If King Solomon is planning to make the first of 5 deposits one year from now, how large must each deposit be for him to be able to finance his daughter's college education? (2 marks) f. Explain to King Solomon what call provisions and sinking fund provisions are and how these provisions are expected to affect the risk of the bond (2 marks) g. Which value will you place on a bond of Zenzo Pharma Ltd? (3 marks) Total: 20 marks value of GH10,000 at a coupon rate of 12% and a term to maturity of 10 years. The bond expects to pay coupons annually. Included in the bond indenture are call and sinking fund provisions. The required rate of return on the market for bonds with similar features is 18% per annum. Your boss had asked you to advice King Solomon based on the information he provided. Required a. Explain to King Solomon what financial markets mean and which three (3) financial instruments he can (4 marks) invest in. b. To the nearest cedi, how much must he save during each of the next 10 years (with equal deposits being made at the end of each year, beginning a year from today) to meet his retirement goal? (Note: Neither the (5 marks) amount he saves nor the amount he withdraws upon retirement is a growing annuity.) c. What will be the present value of the cost of 4 years of education at the time the daughter Daisy turns 18? (2 marks) d. What will be the value of the GH 7,500 that Daisy received from her grandfather's estate when she starts college at 18? (2 marks) e. If King Solomon is planning to make the first of 5 deposits one year from now, how large must each deposit be for him to be able to finance his daughter's college education? (2 marks) f. Explain to King Solomon what call provisions and sinking fund provisions are and how these provisions are expected to affect the risk of the bond (2 marks) g. Which value will you place on a bond of Zenzo Pharma Ltd? (3 marks) Total: 20 marks