Q1.List the four main classifications of bonds and differentiate among them. Explain why the market value of an outstanding fixed-rate bond will fall (increase) when interest rates increase (fall).

Q2.Demonstrate how to find the present and future value of.An uneven series of cash flows.

Q3.1. Calculate the value of an option free, 15-years, $1,000 par, 10% annual pay bond if: A. Annual interest rate is 12%. B. Annual interest rate is 8%. 2. If the above bond is callable in 4 years for $1,040, calculate the value of the bond if market interest rate is 8%. 3. If the above bond is putable in 5 years for $980, calculate the value of the bond if market interest rate is 12%.