Problem 1) How is an investor's risk aversion reflected in a bond's maturity risk premium?
Problem 2) Would an increase in the volatility of long-term interest rates cause a bond investor to pay more or less for a non-callable bond that had high convexity?
Problem 3) If you purchase a callable bond for $X. How you are simultaneously selling a call option.
Problem 4) How is a long-term bond's price impacted in opposite directions when the required rate of return on the bond rises?