1. Show that if the coupon rate on a bond is greater than the yield to maturity, then the bond sells for a premium. Show that if the coupon rate on a bond is less than the yield to maturity, then the bond sells for a discount.
2. Do you agree or disagree with the decision in the Lambert case (p. 323, textbook). Explain by making EXPLICIT reference to any of the principles of Contract Law (say which one(s) you are using) that are in the Chapter. Please refer to at least some principles, and cite the page number that they are on, in order to receive a satisfactory score.