1. Investors consider various investment strategies to capture profitable opportunities in the market, such as bond-pricing rules, interest-rate change, deep discount versus par bonds, yield spread considerations, or tax-exempt of municipal bonds.

Assume you are an investor, explain the strategy you would most likely use and the strategy that you would least likely use. Provide examples and/or research sources to justify your reasoning.

2. What are the reasons that corporations issue convertible bonds and warrants? Describe the benefits and drawbacks that investors should be aware of when invest in convertible securities and warrants. Discuss the impact of disruption events, such as the COVID-19 pandemic on convertible bonds.