Problem 9 (two points) (a) What is a bond? (b) Why are bonds issued? (c) What is a subordinated bond? (d) What is a convertible bond? (e) What is a callable bond? (f) What is a putable bond? A long-term debt instrument in which a borrower agrees to make payments of principal and interest, on specific dates, to the holders of the bond. Problem 10 (two points) Calculate the value of a Bond (a)This bond has a $1,000 lump sum (the par value) due at maturity (t = 10), and annual $100 coupon payments beginning at t = 1 and continuing through t = 10. Problem 11 (two points) Define the following: (a) What is reinvestment risk? (b) How do purchasers of bonds protect themselves from this risk? EN Problem 12 (two points) What is the CURRENT YIELD on a 9%, 10-year, $1,000 bond with a current price of $875? Focus