Question 4 (25 marks) a. Bonds sometimes trade at a discount or a premium in secondary markets. Explain what it means when bonds trade at a discount and at a premium and discuss the potential reasons for this. (10 marks) . SolarGen, a private company established in the United States in 2010 by entrepreneur David Lin, specialises in producing components for the solar energy industry, including photovoltaic panels and inverters. With 60% ownership, Mr Lin has led the company through years of robust growth. The global energy crisis and the shift towards renewable energy have positioned SolarGen for significant international expansion. To finance this growth, substantial new equity capital is needed. Mr Lin is considering raising the required capital through an Initial Public Offering (IPO) of shares. Advise Mr Lin on the potential risks and rewards of raising the required capital through an IPO. (15 marks) Your answer to part (a) of this question should be no more than 300 words. Similarly, the answer to part (b) should also not exceed 300 words. Question 4 (25 marks) v