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Question #1: (a) List the three main sources of finance of business organization. (b) What is meant by ownership securities and what are their different

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Question #1: (a) List the three main sources of finance of business organization. (b) What is meant by ownership securities and what are their different types? (c) Discuss the differences between Equity Shares and Preference shares. (d) Explain how the assets depreciation is considered as an internal source of fund. (e) What are the four elements of financial risk? (1) What is default risk and interest risk of bonds. Which bond types have these kinds of risk? (g) Some bonds have Zero coupon". Explain what does it mean and give an example. Question #2: If you buy a callable bond and interest rates decline, will the value of your bond rise by as much as it would have risen if the bond had not been collable? Exaplin. Question #3: ABC's bonds have 10 year remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 8%, and the yield to maturity is 9%. What is the bond's current market price? Question #4: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10 annual coupon Bond L matures in 15 years, while Bond S matures in 1 year. What will the value of each bond be if the going interest rate is 5%, 8%, and 12? Assume that only one more interest payment is to be made for Bond S at its maturity and that 15 more payments are to be made on Bond L

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