Question: Question 1 (24 marks) Explain that whether you agree or disagree each of the following parts (with not more than 80 words for each part).

Question 1 (24 marks) Explain that whether you agree or disagree each of the following parts (with not more than 80 words for each part).

(a) Some investors may buy a financial product even though the expected real return rate is zero. (6 marks)

(b) No investor would buy a bond in which the bond price is greater than the face value. (6 marks)

(c) Borrowers cannot get any loan from a bank with an interest rate of 3% if the best lending rate (prime rate) is at 5%. (6 marks)

(d) Capital markets are markets involve the trading of long-term securities such as T-Bills. (6 marks)

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