1. Explain interest rates. What are they? Why are there so many interest rates quoted in the financial world? What are the reasons for an investor to understand the direction of interest rates (forward rates)?

2. What are the reasons for bonds? Why would an issuer offer a serial issue to investors? Why is a serial issue beneficial to the issuer?

3. Utilizing your knowledge of the relationship between rates and bonds, explain why in today's market issuers would like to issue long term bonds while investors would only like to invest short term?