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Answer the following questions with 1-3 sentences each. a) If there are two bonds available (from the same issuer and with the same maturit that

image text in transcribed Answer the following questions with 1-3 sentences each. a) If there are two bonds available (from the same issuer and with the same maturit that have two different coupon rates, why would anyone buy a bond with a lower coupon rate? Explain. b) Consider a corporate bond that was issued recently. What are the two main reasons that the market price of a bond may go down? c) Cash flows to shareholders in the form of dividends is at the discretion of managers. Is it bad for shareholders if managers choose to pay out low dividends? Explain. Answer the following questions with 1-3 sentences each. a) If there are two bonds available (from the same issuer and with the same maturit that have two different coupon rates, why would anyone buy a bond with a lower coupon rate? Explain. b) Consider a corporate bond that was issued recently. What are the two main reasons that the market price of a bond may go down? c) Cash flows to shareholders in the form of dividends is at the discretion of managers. Is it bad for shareholders if managers choose to pay out low dividends? Explain

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