a) Marina has two (2) bonds in her portfolio that have a face value of RM1,000 and pay a 10% annual coupon. Bond A matures in 15 years, while Bond B matures in 1 year. Calculate the value of Bond A and bond B, if the going interest rate is 9.5%. (6 marks)

b) Explain three factors that affect the pond's rating issued by a company. (6 marks)

c) Explain the 3 differences between common stock and preferred stock. (9 marks)

d) Based on what you know about repurchase agreements, would you expect them to have a lower or higher annualized yield than commercial paper? Why? (4 marks)