Question: 1. What is a bond spread and how is it related to the default risk premium? How are bond ratings related to default risk? What

1. What is a bond spread and how is it related to the default risk premium? How are bond ratings related to default risk? What factors affect a company's bond rating? m. What is interest rate (or price) risk? Which bond has more interest rate risk: an annual payment 1-year bond or a 10 -year bond? Why? n. What is reinvestment rate risk? Which has more reinvestment rate risk: a 1-year bond or a 10-year bond? o. How are interest rate risk and reinvestment rate risk related to the maturity risk premium

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