Suppose that a profit sharing plan has invested a substantial portion of your savings in your employers bonds A news story reports that your employers auditor is issuing a qualified report because of the use of questionable accounting practices Will the risk premium on your employers bonds increase or decrease Why (12 marks) What will happen to the market value of your investment in your employers bonds (13 marks) please provide a clear explanation for each answer thank you

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Suppose that a profit-sharing plan has invested a substantial portion of your savings in your employers bonds. A news story reports that your employers auditor

Suppose that a profit-sharing plan has invested a substantial portion of your savings in your employers bonds. A news story reports that your employers auditor is issuing a qualified report because of the use of questionable accounting practices.

Will the risk premium on your employers bonds increase or decrease? Why? (12 marks)

What will happen to the market value of your investment in your employers bonds? (13 marks)

please provide a clear explanation for each answer. thank you!

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