Black Swan Development Co Ltd {'Swanco'] is a Fiji company. Shares of Swanco are largely owned by Chinese investors. Swanco is a subsidiary of Evergreen Limited a large China company. Eoth Swanco and its parent are engaged in the business of land development. Swanco has a number of development projecE in Fiji. Funding for the company's projects is being raised by an issue of bonds to Fiji investors. The bonds are formally called the 'Swanco $100 ? year ? percent Registered Bonds'. The company plans to issue bonds having an aggregate face value of FID $23 million. The company announces that is of the planned bond issue has already been placed with Fiji institutions priced at $1M. The remaining Pi has been reserved for retail investors and priced at $99.51}. Members of the public have shown considerable interest in the offering and close to 313% of the bonds reserved for retail investors have already found buyers. Restated; State the two promises seen in the Swanco bonds. Which investor group will get the better rentrn on invesm'ient the institutional investors or the retail investors? Explain your answer. Will Swanco establish a register of debenture holders? Be specific. Aside from the bond issue Swanco plans an issue of Redeemable Preference Shares ['RPS']. The RPS provide for a xed cumulative armual dividend of 8% of the issue price and are redeemable at the option of the shareholder at any time after ? years. Shareholders wishing to exercise their redemption option must provide 3 months notice. [in redemption the shareholder is entitled to the share's issue price plus any accumulated unpaid dividend. In lieu of redemption a shareholder may elect that their RPS convert to ordinary shares of Swanco on a one for two basis (one RPS converm to 2 ordinary shares of Swanco.) Rguired: The Swanco bonds pay interest of ?%. Why do you think the RPS provide for a fixed preferential dividend of 8%? Explain your answer In what circumstance will the conversion right in the RPS prove to be valuable? Be specic