Question 1 (Callable and puttable bonds): Consider the following set of bonds, all issued on the same day by FINE Corp with 15 years to maturity. Each bond carries a coupon of 5% payable semi-annually. Discuss the risks faced by the issuer and bond investor in each of these bonds. Finally, rank the bonds in the order of their likely price at issue.\ \ \ Callable on any day after the fifth anniversary of bond issuance\ \ \ Risks Faced by the Issuer: \ \ Risks Faced by the Bond Investor: \ \ Callable only if at least 10 years have passed since the bonds issuance. \ \ Risks Faced by the Issuer: \ \ Risks Faced by the Bond Investor: \ \ Puttable on any day following the 5th anniversary of bond issuance.\ \ Risks Faced by the Issuer: \ \ Risks Faced by the Bond Investor: \ \ Puttable only if at least 10 years have passed since the bonds issuance.\ \ Risks Faced by the Issuer: \ \ Risks Faced by the Bond Investor: \ \ \ No callability or puttability features (plain vanilla bond).\ \ \ Risks Faced by the Issuer: \ \ Risks Faced by the Bond Investor: \ \ \ Rank the bonds in the order of their likely price at issue: