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QUESTION 2: 16 marks Are the following statements true or false, please justify your answer? A) When corporation XYZ decides to borrow from the public

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QUESTION 2: 16 marks Are the following statements true or false, please justify your answer? A) When corporation XYZ decides to borrow from the public through issuing new Stocks they rely on primary money market. (6 marks) B) Money market financial instruments are less risky than capital market financial instruments. (3 marks) C) The market price of a bond (P)-that pays periodic coupon interest - should always equal the fair value (PV) of the same bond. (4 marks) D) When market participants have more Near-Term Spending Needs, then the equilibrium interest rate increases

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