Question 3 (this question has two parts, (a) and (b)) (6 + 6 = 12 marks) a) Atlantis Limited is listed on the ASX and is expanding its business operations into China. In order to expand, the company will need to raise additional funds through the issue of corporate bonds direct to the capital markets. Discuss the structure and attributes of two securities that are often issued into the corporate bond market. Which carries more risk and why? Answer: b) Star Funds Management needs to make some short term investments. They are considering investing in 180 day-bills and have two options. Option A is a bill with a face value of $100,000 currently priced at $96,550 and Option B is a bill with a face value of $200,000 currently priced at $ 193,750. Assuming the risk of both bills is the same, which one provides the best return/yield? Answer: [TX () e to search C W MAG271C 144 HA