Two securities that are traded in the corporate bond market are debentures and unsecured notes. Required: a) Outline the attributes of each of these securities. In your answer, include a discussion on the nature of a fixed and floating charge. Identify the types of borrowers that have access to funds through the issue of debentures and unsecured notes. The corporate bond market is a significant source of funds for corporations raising finance directly from the capital markets. Required: b) Describe the nature of the corporate bond market. In your answer, explain why corporations seek to raise debt funds directly from the markets, why investors provide debt funds directly to the capital markets, and where direct investment funds come from. A highly rated corporation has issued $1 million of debentures, with a fixed-interest coupon equal to current interest rates of 13.00 per cent per annum, coupons paid half-yearly, and a maturity of seven years. Required: c) What amount would the corporation have raised on the initial issue of the debentures? d) After one year, yields on identical types of securities are now 12.00 per cent per annum. The existing debenture now has exactly six years to maturity. What is the value, or price, of the existing debenture in the secondary market? e) Explain why the value of the debenture has changed.