1. Explain in 300-400 words, why some bonds sell at a premium over par value while other bonds sell at discount. What do you know about the relationship between the coupon rate and the YTM for premium bonds? What about for discount bonds? For bonds selling at par value?
2. How does China Noah’s profitability (using return on sales as the primary metric) change depending on whether the IDR/CNY exchange rate follows (a) forecast spot rates, (b) forward rate quotes, or (c) fixed rate baseline assumption?