Reword the following answer: Question 3: If the required return (or Yield to Maturity, YTM) is less than the coupon rate, a bond will sell at a premium. Explanation: A bond's price is the sum of the present value of its future cash flows. These cash flows include the regular coupon payments and the return of principal at the maturity date. The required return (or YTM) is used as the discount rate in this present value calculation. If the required return is less than the coupon rate, it means that the investor is willing to accept a lower return than what the bond is offering. Therefore, the bond will be worth more to the investor, and they are willing to pay a premium over the bond's face value. Question 4: In the event of default, debt holders must give preference to more senior debt holders in the priority of repayment distributions. Explanation: In the event of a default or bankruptcy, a company's assets are distributed among its creditors according to the priority of their claims. The senior debt holders hold the highest priority and are paid first. If there are any assets left after the senior debt is paid, the remaining assets are distributed to the subordinated (or junior) debt holders. This hierarchy is the reason why senior debt tends to have lower interest rates than subordinated debt - it's less risky because in the event of a default, senior debt holders are more likely to get their money back