a. The Finger Lakes Outdoor Sports Inc. issued a discount bond with a face value of $1,000. Merrill Lynch, an investment bank, bought this bond. Merrill Lynch is a (borrower/lender), while The Finger Lakes Outdoor Sports is a (borrower/lender). This method of borrowing money is considered (direct finance/indirect finance). b. Suppose you purchase a 5-year $1,000 coupon bond with a coupon rate of 2.5%. You sell it one year later for the market value of $1030. One year later, the current yield of this bond is _(%) and the yield to maturity must be (higher/lower) than the coupon rate, because c. Explain why there is a negative relationship between the price of a bond and the interest rate (yield) on a bond