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1) Explain why securities like Australian government bonds have had lower returns, on average, than corporate bonds e.g. Bonds issued by a company like Qantas.

1) Explain why securities like Australian government bonds have had lower returns, on average, than corporate bonds e.g. Bonds issued by a company like Qantas. Please answer in no more than one sentence.

2) Describe how the financing decision may increase or decrease the risk of the firm. Please answer in no more than one sentence.

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