Response to the following questions:
1. A sinking fund provision may appear to be a benefit to the issuer of a bond. However, if there is an acceleration provision, this is a benefit to the issuer. Explain why.
2. a. If a corporation were to issue both a convertible bond and a nonconvertible bond-both identical except for the conversion feature-how would the prices of the two bonds compare?
b. How would the yields on the two bonds compare?
If possible, please give examples to better understand your answers.