Answer:

Bond Pricing

The main principal behind bond pricing is price equal to  the present value of its expected (future) cash flows. Bonds have its   face value, interest rate in economy, coupon, maturity period, issuers and yield. All these mention factor play a role in the bond pricing. Among all this mention factor what effect more on bond pricing is level of prevailing interest rates in the economy. If the interest rate rises then the price of bond fall and it will raise the yield and newer bonds being issued with higher coupons and as against to this if the interest rate fall the price of the bond increases in the market , and it will fall the yield and newer bonds being issued with lower coupons

financial distress in an organization.

Let us understand first the meaning of the financial distress in the organisation.It is the situation where a company cannot meet, or has difficulty paying off, its financial obligations to its debt like interest payment , bonds payment etc. This is occur due to high fixed cost or economic downturns. In such situation company may have opportunity costs of projects and less productive employees, more expansive financing.