Please answer all 10 questions using money& capital market principles, You may use the lectures I attached to find the answers, Thank you! Please let me know if you have any questions!

1. What does it mean for a bond to sell at a premium?

2. What does it mean for a bond to sell at a discount?

3. What does it mean for a bond to sell at par?

4. You have a bond with a 5% coupon, 10 years to maturity and a Yield to Maturity of 4.75%. What is the dollar value of the bond?

5. What is duration? What does it measure?

6. Define the following terms

  • Coupon rate
  • Required rate of return (r)
  • Expected rate of return or E(r)
  • Realized rate of return (r)

1.) What exactly do we mean by the term money market?

2.) What are the principle goals usually perused by money market investors?

3.) Define the following types of risk; (a) market risk (b) default risk (c) inflation risk (d) currency risk; and (e) political risk.  

4.) Which of these are minimized by purchasing money market instruments?  5.) Does investing in the money markets avoid all of the foregoing risks?

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