1. What makes up the price of a bond? Think cash flow.

2. What is the relationship between bond price and the market rate? Describe.

3. How do the 5 entries to Time Value solver work with bonds? (N, i/y, PV,PMT, FV) Explain each key.

4. What is the difference between coupon rate and market rate?

5. What are the cash flows for a bond?

6. What is the volatility difference between a long term bond and a short term bond?

7. When is a bond priced @ $1000? (Three answers needed)

8. What do the terms discount and premium mean as they relate to bonds?

9. What is a call provision on a bond?

10. When will a firm call their bonds?

11. What creates value for a bond?

12. How does the discount rate (market rate) and bond ratings relate?

13. Why does a bond price change over time? (Two answers needed)

14. When is a good time to buy a bond?

15. What makes up the yield on a bond?

16. What is YTM for a bond mean?