Explain what is meant by the term “corporate governance, Singapore

Assignment Details:

Question 1

Explain what is meant by the term “corporate governance”.  In 2015, an emissions scandal involving Volkswagen unfolded.  Based on your knowledge of corporate finance, critically assess what has happened to the value and performance of Volkswagen since the emissions scandal was uncovered.  Why do you believe the value has changed and what impact this might have on the corporate governance policies of Volkswagen going forward?  How can Volkswagen mitigate the risk of events such as this one occurring in the future?

Question 2

1. If you purchase a 5-year zero-coupon bond for $500, how much could it be sold for 3 years later if interest rates have remained stable? The par value of this bond is $1000.
2. How much would an investor need to receive in nominal return if he desires a real return of 4% and the rate of inflation is 5%?
3. What is the realized rate of return for an investor who pays $1,054.47 for a 3-year bond with a 7% coupon and sells the bond 1 year later for $1,037.19? The par value of this bond is $1000.
4. An investor is convinced that a corporation has a potential competitive advantage in its market sector and a capacity to realize this advantage. Nevertheless, she is concerned that corporate management may choose to pursue a less risky strategy and not to fully realize the potential of the firm. Discuss the difficulty faced by this investor. Are you aware of any arrangements which might better align the interests of this investor and management? Describe and evaluate such arrangements.