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please find bellow the questions for the first assignment. This is an individual assignment and although I encourage you to discuss it with classmates, you are expected to submit your work individually before the deadline. All essay questions should be written in your own words and appropriate references made where needed.Please follow the guidelines (e.g. word count) where appropriateand as much as possible. You are expected to submit allof your answers in one file prior to the stated deadlinein a Word document.Q1.Briefly describe the main types of financial institutions (the banking sector, long-term saving institutions, risk spreaders and risk takers) and explain their function.(200 words max)Q2.Describe and explain the characteristics of the main money market instruments and discuss their advantages and disadvantages from the perspective of a bank needing to raise short-term borrowings.(200 words max)Q3.You have been asked by the prospective directors of a shortly to be established business what is meant by ordinary shares, preference shares and debt capital. Further, you have beenasked to provide a brief explanation of their relative advantages and disadvantages as sources of funds to expand the business. Write an essay to assist these managers.(200 words max)Q4.On 1 September 2021a company raises finance by agreeing a six-month eurodollar loan for $10million offered at an interest rate of 2.8per cent. Calculate the cost of the loan in dollars.(a) on a 30/360-day count basis (180 days)(b) on a 365-day count, actual/365 basis (183 days)Q5.You purchase $1,000,000 worth of six-month US Treasury bills on the secondary market with a quoted yield per annum of 0.94per cent. The bills have 100days to maturity. How much would you pay? Use the actual/365-day count convention. Q6.As a winner of a lottery you can choose one of the following prizes:1)£10million now.2)£15million at the end of sixyears.3)£800,000 a year forever, starting in one year.4)£1,500,000 for each of the next ten years, starting in one year.If the discount rateis 8per cent, which is the most valuable prize?Q7.What is the present value of £50000to be received in ten years’ time when the interest rate (nominal annual) is 8per cent and (a) annual discounting is used? (b) semi-annual discounting is used?Q8.Allanbuys a car on hire purchase paying sixannual instalments of £4,500, the first beingan immediate cash deposit. Assuming an interest rate of 8per cent is being charged by the hire-purchase company, how much is the current cash price of the car? Q9.Imagine that the market yield to maturity for five-year bondsin a particular risk class is 8per cent. You buy a bond in that risk class which offers an annual coupon of 7per cent for the fiveyears, with the first payment in one year. The bond will be redeemed at par (£100) in five years. (a) How much would youpay for the bond?(b) How much would you pay for the bondif you think that the company became less risky, and its yield to maturity should be 6 percent?