a) XYZ company borrows Kshs 10,000,000 due in 15 years for the purpose of business expansion. If the bond agreement provides that Ksh 500,000 be raised from revenues and put in a fund each year, what rate of interest must be charged in order to pay off the principal of the debt at maturity? (10 marks)
b) Interest on certain deposits is compounded weekly. The annual effective rate is 15%. Find the nominal rate of interest per annum. Also obtain the accumulation of an investment of Ksh 5,000 over a period of 13 weeks. (10 marks)
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