Help in solving these out.

(i) What are the advantages and disadvantages of hire purchase agreements and credit sale agreements from the point of view of the supplier? (ii) State the main distinction between an operating lease and a finance lease. (iii) State the main distinction between a bank loan and a loan facility. (iv) State the main distinction between a loan facility and an overdraft. (v) State the main distinction between a credit sale agreement and trade credit. (vi) What are the advantages and disadvantages of invoice discounting and non- recourse factoring from the point of view of the supplier? (vii) Describe how a company raises finance using: (a) bills of exchange (b) sterling commercial paper and indicate the most important differences between these two financial instruments.The stochastic differential equations defining the short-rate process assumed in three commonly used models for the term structure of interest rates are shown below: Model 1: dr(1) = au-r(0)]di + odw() Model 2: dr(n) = atu-r(0)]detour(odw() Model 3: dr(1) = au(1)-r(0)]di + odw() In each case, W() denotes a standard Brownian motion under the risk-neutral probability measure. (i) Identify these three models. [1] (ii) Outline the key statistical properties of the short-rate processes for each of these models. [6] (iii) The dynamics of a fourth model are defined by: Model 4: dr(t) = 0di + odw(1) where e and o are constants. State the limitations of this model. [4] [Total 11]