Question: a) Discuss why estimating the value for a bond is easier than estimating the value for a common stock b) When comparing futures and forward

a) Discuss why estimating the value for a bond is easier than estimating the value for a common stock

b) When comparing futures and forward contracts, it has been said that futures are more liquid but forwards are more flexible. Explain what this statement means and comment on how differences in contract liquidity and design flexibility might influence an investors preference in choosing one instrument over the other.

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