Differences between fundamental analysis, Corporate Finance

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Question:

(a) Distinguish between open-ended funds and closed-ended funds.

(b) Briefly explain the differences between fundamental analysis and technical analysis.

(c) On September 20,2012, SBM Ltd issued Rs 100 million par amount of long term bonds bearing a coupon that is indexed to a three month T-bill rates plus a spread of 200 basis points and maturing in 2022. The bond is rated AAA and is callable after 10 years.

Assess the main risks involved given that an investor is considering the purchase of this bond.


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