Question: Bond yield are at all-time lows while Prices are at all-time highs. Discuss the possible reasons for a bonds yield to fall? (15 Marks) (b)

Bond yield are at all-time lows while Prices are at all-time highs. Discuss the possible reasons for a bonds yield to fall? (15 Marks)

(b) Modigliani and Millers capital structure theory, Trade-off theory and Pecking order theory are used to explain the capital structure decisions of firms. Explain what each of these theories proposes and recommends. (20 Marks)

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