4D. Discuss the main differences between the following items: 1. Term Loans versus Revolving Credit Facility ii. Syndicated Loans versus Bilateral Loans iii. Underwritten Facilities versus Arranged (or Best Efforts) Facilities (4D. 6 marks) Question 5 - 11 marks (Equity Financing and IPO Decision) 5A. Give 6 (six) possible factors that underwriters and issuers should consider in making their IPO pricing decision. (5B. 6 marks) 5B. What are 5 (five) possible reasons why companies issuing new shares in an IPO (or initial public offering) would decide to deliberately sell the shares at an IPO price that could be lower than expected market value? (5B. 5 marks) Question 6 - 19 points (Research, Sales and Trading) 6A. What are the 4 main functions of an investment bank's Trading and Sales Team? (6A. 4 marks) 6B. In a Yield Curve Arbitrage, if a trader believes that yield curve is going to steepen (i.e. longer-tenor rate will increase and shorter-tenor rate will decrease), what trades should he or she conduct to make profits and why? (6B. 3 marks) 6C. The following are details of the 5-year USD-EUR swap transaction entered into by Bank XYZ with Customer ABC: Current Spot Exchange Rate: EUR 1 = USD 1.225 At initiation: XYZ pays US$ 200 million to ABC and ABC pays EUR 120 million to XYZ Every 6 months: XYZ pays 2% fixed per year on EUR 120 million ABC pays 4% fixed per year on USD 200 million