Adventures in Personal Finance Short Answer 1. Match the following terms with the correct corresponding definition. a. Coupon rate. b. Inverse. C. Coupon payment d. Face value. e. Default risk. f. Rating agency. g. Municipal bond. 1. Analyzes corporations and governments as to their ability to repay their debts. 2. The amount of money that the bond issuer will pay to the bondholder on the maturity date. 3. The risk that the bond issuer may not be able to repay the bond. 4. The contractual amount of interest that the bond issuer will pay the bondholder. 5. Bonds issued by state and local governments. 6. The contractual interest rate that the bond issuer has agreed to pay the bondholder. 7. The relationship between changes in current interest rates and the fair market value of bonds. Calculate if a bond is issued with a face value of $1,000 and a coupon rate of 5%: a. What will the total annual coupon payment be? b. If coupon payments are made twice per year, what will the semiannual coupon payment be for this bond