Please answer each of the following questions in detail. Make sure to provide examples for each of the questions below. 1. Please explain the terms associated with the bonds, namely, corporate bond, municipal bond , treasury bill, par value, coupon rate, coupon payment, time to maturity, prevalent interest rate, market value and yield to maturity (YTM). 2. Explain and provide examples of how variations in the prevalent interest rate affects market value of a bond. Kindly answer both the subparts WITH EXAMPLES.

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A: As per company policy it is only possible to solve one question.

Q: how a bond issuer decides on the appropriate coupon rate to set on its bonds

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Q: “Investing in bond is easy because investors can choose the bond based on the bond rating given by…

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A: The answer along with the explanation is provided below.

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Q: Discuss on how a bond issuer decides on the appropriate coupon rate to set on its bonds.

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Q: Please explain the terms associated with the bonds, namely, corporate bond, municipal bond ,…

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