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1.Differentiate between nominal and real interest rates? 2.What are protective covenants? List some negative and positive ones? 3.XYZ Enterprises has bonds on the market making

1.Differentiate between nominal and real interest rates?

2.What are protective covenants? List some negative and positive ones?

3.XYZ Enterprises has bonds on the market making semiannual payments, with 16 years to maturity. You require a 12% ROI (YTM) and this bond offers 10% coupon rate assuming $1, 000 par value.What should you pay for this bond?

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