1. Explain why the market price of a bond may change over time, and discuss the conditions under which a parity bond may become a discount bond or a premium bond. 2. Fully explain and discuss the notions of primary and secondary bond markets. 3. Discuss the concept of non-conventional projects, and explain which investment criterion between Net Present Value (NPV) and Internal Rate of Return (IRR) should be used to evaluate this type of projects. 4. How is the Internal Rate of Return (IRR) of an investment defined? How can an investment analyst make a decision using the IRR as a criterion? 5. Cooperton Mining just announced it will cut its dividend from $4 to $2.50 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expected to grow at a 3% rate, and its share price was $50. With the new expansion, Cooperton's dividends are expected to grow at a 5% rate. What share price would you expect after the announcement? (Assume Cooperton's risk is unchanged by the new expansion.) Is the expansion a positive NPV investment? 6. Procter & Gamble will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 12% per year thereafter until the fifth year. After then, growth will level off at 2% per year. According to the dividend-discount model, what is the value of a share of Procter & Gamble stock if the firm's equity cost of capital is 8%