1 - Using your understanding of bonds, explain the difference between coupon rate on bonds and yield to maturity? Why might the two rates be different?

2 - If Cousin Eddies business (the business he purchased from Clark Griswald in 2019) issued $52,450 in bonds (face amount) in January 1, 2020, with 7% coupon, interest paid on June 30 and December 31, and the bonds mature in ten years (12/31/2030.) Investors thought the bonds were too risky and wanted a higher yield to maturity due to the risks with Cousin Eddie running a business, and demanded a yield to maturity of 10%, how much would Cousin Eddie receive when he issued the bonds on January 1, 2020?

3 - Explain the concept of "Price Risk" as it relates to bonds. Do long-term bonds have more or less "price risk" than short-term bonds? Why or why not? Use TVM to explain in concise terms.

4. Explain what "bond duration" is and why it is important to understanding bonds as investments. (You may have to do a web search to answer this question.)