Question: Q.3. Assume that you have started a date fruit processing business in Ibri. Your business will reach to peak stage from the month of June

Q.3. Assume that you have started a date fruit processing business in Ibri. Your business will reach to peak stage from the month of June to October (because of season) and again it will become normal from November to May. Therefore you need some extra capital for the period of 5 months. There are some options to mobilize the capital from the local financial market like equity shares, preference shares, term bonds and serial bonds. Which of the given source is suitable for your business? Explain your answer with suitable reason. (3.5 Marks)

By keeping the above scenario, analyze and write for the following.

a) Explain about the types of issue of bonds in Oman? Differentiate between bonds issued at premium and bonds issued at discount (any 5 points).

b) Suppose if you are an investor, which type of bond that you will purchase (any 3) and write with reasons on your own with suitable examples.

c) How the long term debt is supporting for the economic development of a country like Oman? Explain it.

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