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Question No. 1 4 A. Describe the two types of risks associated with investment in corporate bonds. How can an investor eliminate these types of

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Question No. 1 4 A. Describe the two types of risks associated with investment in corporate bonds. How can an investor eliminate these types of risks? (5 marks) B. Glider Enterprises bonds currently sell for $2,150, have an 11% coupon interest rate and a $2000 par value, pay interest annually, and have 18 years to maturity. Calculate the bonds' yield to maturity (YTM) (8 marks) c. Explain each of the three approaches to common stock valuation: (a).. book value, (b). Liquidation value, and (c).pricelearnings (P/E) multiples. Which of these considered the best? (7 marks) D. What relationship between the required return and the coupon interest rate will cause a bond to sell at a discount? At a premium? At its par value? (5 marks) (25 marks)

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