1. A) The Kingdom of Saudi Arabia issued over the last months a multi-billion straight bond in US dollars and a sukuk program. a. Describe and contrast straight bonds and sukuk (10 points). b. What condition must be met by an investment to be Shariah compliant (1O points). c. Discuss why the Kingdom decided to use both investment vehicles (5 points).

B) The Federal Government of Nigeria has just announced a sukuk program to finance its roads.

a. What condition must be met by an investment to be Shariah compliant. (10 points)

b. What structural difference exist between a straight bond and a sukuk. Give one example of sukuk structure (it doesn't have to be the one used by Nigeria). (10 points)

c. Discuss why an African country chose to issue a sukuk instead of a straight bond. (5 points)