(e) In each of the following parts, explain an expression that shows the relationship among the listed terms:

The price of a coupon bond, coupon payments ,the face value, the yield to maturity.

The amount borrowed on a simple loan ,the required loan payment, and the yield to maturity.

The price of a discount bond,the bonds face value,and the yield to maturity.

The amount borrowed on a fixed payment loan ,the payments on the loan ,and the yield to maturity.

Briefly explain why bonds have the same maturities often do not have the same interest rates.

How is a bonds ratingrelated to the bonds issuer's creditworthiness?

How does the interest rate on an illiquid bond compare with the interest rate on a liquid bond?how does the interest rate on a bond with high information cost compares with the interest rate on abond with low information costs?

(F) According to Moody's, "obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk".

What "obligations"isMoody referring to?

What does Moody's mean by credit risk?

(G) Briefly explain why a country without a robust financial system might struggle to achieve high rates of economic growth.