Q1. A company generally has two ways to handle its sinking fund: It can either...

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Finance

Q1. A company generally has two ways to handle its sinking fund: It can either call its bond or purchase its bonds on the open market. If you are the financial manager of the company, how should you do?

Q6: Compare the interest rate risk and reinvestment rate risk between a 10-year bond and a 1-year bond. We assume the two bonds have the same coupon rate at 10%.

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