QUESTION ONE a. Discuss the 3 different views on how dividend policy affects stock prices. [6 marks] b. List and define 2 types of Financial Markets. [2 marks] C. What factors affect security expected return? [4 marks] d. There are two types of Options, explain their differences. [4 marks] e. What is the name given for the most common way in which professional dealers and brokers state foreign exchange quotations in the interbank market? What is the alternative name? [4 marks] f. Briefly explain Premium and Discount bonds. [2 marks] g. A company has a bond issued at par K1,000 and 2 years after being issued the bond is being sold for K1, 200. The coupon rate on the bonds is 10% and had a maturity of 10 years. Find the YTM? [3 marks] [Total: 25 marks]