Reference no: EM132828152

Question A

Two securities that are traded in the corporate bond market are debentures and unsecured notes.

Required:

Outline the attributes of each of these securities. In your answer, include a discussion on the nature of a fixed and floating charge. Identify the types of borrowers that have access to funds through the issue of debentures and unsecured note.

Question B

The corporate bond marketis a significant sourceof fundsfor corporations raising finance direct from the capital markets.

Required:

Describe the nature of the corporate bond market. In you answer explain why corporations seek to raise debt funds direct from the markets, why investors provide debt funds directly to the capital markets and where direct investment funds come from.