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Most assets in David Limited are bonds with the rating of CCC, and the coupon rates for such bonds are 10% with 20 years to
Most assets in David Limited are bonds with the rating of CCC, and the coupon rates for such bonds are 10% with 20 years to maturity. Most assets in another firm, Katy Limited, are high-rated bonds with rating of AA, and those bonds are zero coupon bonds with 5 years maturity. Compare the potential risks (e.g. liquidity risks and reinvestment risks) faced by David Limited and Katy Limited (with not more than 150 words). (10 marks)
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