Volta River Authority (VRA) has just announced its intention to issue a corporate bond to the Ghanaian Market beginning September 20, 2021. You work in an Investment Bank as an Investment Advisor and Portfolio Manager. A number of your clients have expressed interest in patronising this bond as the anticipated coupon rate is very attractive. One of your clients, who is a serious risk averse investor approached you to discuss the risk associated with this corporate bond.

a. Briefly explain to this investor the various risk associated with this pending bond VRA SPECIAL. b. Show how this investor can reduce the above mentioned risk.

c. Outline any five (5) advantages that Volta River Authority (VRA) may benefit from raising capital by Issuing this bond.