1. Explain why it will cause the value of the investor’s shareholding in a company to reduce If a company undertakes a rights issue. (800 words)
2. Selected time period is 2006-2016, Explain how the trends and changes of the federal funds rate and/or the discount rate have impacted short-term or long-term interest rates during this period.
3. If a regular 20 year bond is 4% and a 20 year bond that is callable after 10 years is 5%, what is the approximate value of the call option?