(Solved): A) Provide TWO (2) examples of financial instruments for each of the following market. For each in ...

A) Provide TWO (2) examples of financial instruments for each of the following market. For each instrument, describe who is/are the issuer(s) and the purpose of issuance? (i) Money market (ii) Capital market (4 marks) B) What is the difference between primary and secondary market? Why is the existence of secondary market so important? (5 marks) C) What is a principal-agency problem? Suggest TWO (2) methods that can minimize the agency problem from recurring. (4 marks) D) What are the THREE (3) main patterns of term structure of interest rate and why economists are wary when the term structure shows a downward sloping? (6 marks) E) Hartanah has issued a 10-year bond with a par value of RM5,000 three years ago. Currently it is trading at \( 95 \% \) of the par value with a coupon rate of \( 8 \% \). Find the yield-to-maturity (YTM) for those who are interested to purchase. (4 marks) F) Ahmad just bought a zero-coupon bond from Eternity company with a 5-year maturity and a par value of RM1,000. If he has bought at RM790, what is the yield that he is earning from this investment?