Question: Note; Describe all both questions in details with examples. Explain the factors that determine the price of a bond. Discuss the concepts of interest rate

Note; Describe all both questions in details with examples.

  1. Explain the factors that determine the price of a bond. Discuss the concepts of interest rate risk and reinvestment risk as they relate to bonds. Also, create a numerical example and show how interest rate risk and bonds' maturity are related.
  2. Discuss the concepts of conventional and nonconventional cash flows in capital budgeting decisions. Also, create numerical examples of capital budgeting projects with conventional and nonconventional cash flows and for each project calculate the NPV, IRR, and MIRR of the project and interpret your results.

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