question 1 and 8

1. (LOI) is it true that a Goversment of Canada security is risk free? 2. (LO2) Which hat greater interest rate risk, a 30 year Canada bond or a 30 year BB corporate bond? 3. (LO5) With regard to bid and ack peices on a Canada bond, is it possible for the bid price to be hizhen? Why or why not? 4. (LO5) Canadr bid and ank cuotes are sometime1 grven in terms of yields, wo there would be a bid yield and an ask yield. Which do you think would be largen Expisin 5. (L.O1) A compary is contemplatine a lonnterm bond isse. It is debating whether or not to anclode a call provision. What are the berieflis to the company from incliding a call provision? What are the costs? How do these asswers clange for a pet jcovition? 6. (LOI) How does a bond bwuer decide on the apbpropriate coupoe rate to tet on its bosds? Explain the difference between the coupoe rate and the sequied retarn oe it bood. 7. (106) Are there any circumatances under which an imestor might be more concemed abota the nomainat retum on an investment than the real returit? 8. (1.03) Companies pay ratiof aecocies luch as DirRS to iade their bonds and the corti can be subtantial. However, companies ste not required io Lave theis bendi eated in tbe firs place, doens so is arictly voluntary Wloy do you think they do it