VSWER ONLY ONE QUESTION IN THIS SECTION 35. a) You are a financial analyst for an international firm that deals in bonds. There are two bonds been offered: SYNO bond and IDIF bond. SYNO is a default-free bond and IDIF bond is a default risk bond. The firm is interested in buying one of the bonds and you are being asked to explain the impact of the default risk status of the bonds on the price and interest rates of the two bonds using appropriate graphs. (10 Marks) b. How would your response to 35a above change if you are informed at the presentation that SYNO bond is a taxable bond while IDIF bond is a tax-free bond? What advice will you give this firm? (Using appropriate graphs) (10 Marks) VSWER ONLY ONE QUESTION IN THIS SECTION 35. a) You are a financial analyst for an international firm that deals in bonds. There are two bonds been offered: SYNO bond and IDIF bond. SYNO is a default-free bond and IDIF bond is a default risk bond. The firm is interested in buying one of the bonds and you are being asked to explain the impact of the default risk status of the bonds on the price and interest rates of the two bonds using appropriate graphs. (10 Marks) b. How would your response to 35a above change if you are informed at the presentation that SYNO bond is a taxable bond while IDIF bond is a tax-free bond? What advice will you give this firm? (Using appropriate graphs) (10 Marks)