a) Write short answers on the following 1. What is a Bond and describe the 5 types of Bonds? (2 marks) ii. What is the different between a conventional bond and an Islamic bond? (2 marks) What is a zero coupon Bond? (2 marks) iv. What is meant by inflation risk and default risk in the context of corporate bonds? (4 marks) b) Value the following three bonds and describe whether the bonds selling at Par value, at a discount or at a premium: i. A three year zero coupon bond, with a par value of 100. (2 marks) ii. A four year UK gilt, with a coupon rate of 5% and a face value of 100 (coupons are paid annually). (4 marks) 1 iii. A six year UK gilt, with a coupon rate of 7% and a face value of 100 (coupons are paid semi-annually). (4 marks) The yield to maturity on the zero coupon bond is 4%, on the four year UK gilt is 8 and for the six year UK gilt, it is 10%