Issuer	Face (Par) Value	Coupon Rate	S&P Rating	Quoted Price	Years until Maturity	Sinking Fund	Call Period
Zion Co	$1,000	5%	AAA	$703.01	20	Yes	3 Years
Zion Co	$1,000	0%	AAA	$208.30	20	Yes	N/A
Leo Firm	$1,000	10%	AA	$1,092.00	20	Yes	5 Years
Leo Firm	$1,000	11%	AA	$1,206.40	30	No	5 Years

Answer the following questions:

A) Why do the coupon rates vary among the four bonds?

B) List five factors that would influence a bonds S&P rating.

C) What typically happens to the price of a bond when the rating agency lowers the bonds rating?

D) Select one of the bonds from the table and calculate its yield to maturity.

E) Briefly describe the purpose and operation of a sinking fund the may be used with a bond issue. What effect does the call provision have on the bonds risk and return potential?

F) A few of the bonds feature a call period option. Briefly explain how this is used.

G) Rank the bonds in terms of their riskiness. Briefly explain your rankings.