Matilda has recently been appointed as an analyst within the Waltzing Investment Co. Part of her role is to advise fund managers on the fixed income portion of their portfolio.   a. One of Matilda’s colleagues suggests that analyzing the bonds issued by foreign governments is more complex than for the bonds issued by domestic corporate bonds. The colleague states that this difficulty is a result of the intangible and non-quantitative elements involved in analyzing the foreign bonds. Discuss whether you agree with this argument.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter5: Bond, Bond Valuation, And Interest Rates
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  1. Matilda has recently been appointed as an analyst within the Waltzing Investment Co. Part of her role is to advise fund managers on the fixed income portion of their portfolio.

 

a. One of Matilda’s colleagues suggests that analyzing the bonds issued by foreign governments is more complex than for the bonds issued by domestic corporate bonds. The colleague states that this difficulty is a result of the intangible and non-quantitative elements involved in analyzing the foreign bonds. Discuss whether you agree with this argument.   

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