i. preferred stock is hybrid security, explain. ii.if there is a decline in interest rates which would you rather be holding, long-term bonds or short-term bonds? Which type of bond has the greater interest-rate risk?
Kindly provide brief answers to the following:
i. preferred stock is hybrid security, explain.
ii.if there is a decline in interest rates which would you rather be holding, long-term bonds or short-term bonds? Which type of bond has the greater interest-rate risk?
iii. One of your best friends, an expert in finance, has just given you the following advice: "long-term bonds are a great investment because there interest rates are over 20-25%," how do you evaluate this statement? Is your friend necessarily correct?
iv. What is the difference between bond with- call provisions and sinking-fund provisions? Which one is riskier from investors (holders) points of view?
v. Suppose international arbitration court imposes a fine of $ 2 billion in a country, what are the likely effect of this event on the bond yields and
vi. If required
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