$1.$Why does a bond sell at a discount when the coupon rate is lower than the required rate of return and vice versa?

$2.$ Describe exchange rate risk in direct foreign investment.

$3.$ A bond with a $$1,000$ face value and a $10$ percent annual coupon rate matures in $15$ years.

Determine the value of the bond to a friend of yours with a required rate of return of $13\%.$

A zero coupon bond with similar risk is selling for $$150.$ The bond has a face value of $$1,000$ and matures in $15$ years. Your friend asks you which bond she should invest in$,$ the zero coupon bond or the bond in part $($a$).$ Which bond do you recommend, and why? Assume the market price of the bond in part $($a$)$ is $$820.$