1. What is the difference between interest rate risk and reinvestment rate risk? Which bonds will have each? 2. What is the difference between an

1.      What is the difference between interest rate risk and reinvestment rate risk? Which bonds will have each?

2.      What is the difference between an upward and downward sloping yield curve?

3.      What is the relationship between interest rates and bond prices?

4.      When will a bond trade at a premium? A discount?

5.      What is a sinking fund provision and how does it affect the coupon rate on a bond?

6.      What is a warrant and how does it affect the coupon rate on a bond?

7.      What is a convertible bond and how does it affect the coupon rate on a bond?