1. Matilda has recently been appointed as an analyst within the Waltzing Investment Co. Part of her role is to advise fund managers on the fixed income portion of their portfolio.

1. One of Matildas colleagues suggests that analyzing the bonds issued by foreign governments is more complex than for the bonds issued by domestic corporate bonds. The colleague states that this difficulty is a result of the intangible and non-quantitative elements involved in analyzing the foreign bonds. Discuss whether you agree with this argument.
2. In researching a recent callable bond issue, Matilda is provided with two yield measures: the option-adjusted spread and the nominal spread. Evaluate which measure would be most appropriate for Matilda to use in this case.