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QUESTION 1 What do you understand by the following? You can explain using an example. Please be precise and concise in your answers. (a) What is the term structure of interest rates? How does the market segmentation theory explains the terms structure. (b) Impact of Issuer's risk on the Cost of bond to the issuer. (c) Proxy battle TT TT Paragraph + Arial 3 (12pt) . E . E - T - fx Mashups . 9 6 @ @ f : 3 8 8 8 8 1 8: | HTML CSS Save and Submit to save and submit. Click Save All Answers to save all answers. Save All AnsPath: p Words:0 QUESTION 2 A bond having a face value of $ 1,000, a coupon rate of 10% and a maturity of 10 years is issued by XYZ Corporation. (a) Immediately after the issue the market interest rate falls to 7%. What is the market value of the bond now? Is it a discount, premium or par value bond? (b) If you can purchase the bond for 1,500 what would be the Yield to Maturity of the bond? TTTF Paragraph + Arial 3 (12pt) FEET T* T. fx Mashups . 1 4 4 HTML CSS ck Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ar