1.To value a bond, you need to bring the future interest payments and the maturity value back to present. When you bring these future cash flows back to present do you use the coupon rate or the market yield as the discounting rate?Pick one.

1.Which bond should change more in value with a 1% change in market interest rates: a 20-year 8% bond or a five-year 8% bond?

1.What is the relationship between economic profit and net present value?

1.Per the book, what role do earnings announcements (not investment announcements) play in the valuation of a business (or project)?

1.From the text, whose responsibility is it to keep the market accurately and well informed?