ORIENTAL ASSET MANAGEMENT CORPORATION BOND VALUATION Lee Teng and Hu Feng are vice presidents of Oriental Asser Management and co-directors of the companys pension fund management division. A major new client, the Shandong Network of Cities, has requested that Oriental Asset Management present an investment seminar to the mayors of the represented cities. Lee and Hu, who will make the presentation, have asked you to help them by answering the following questions. a. What are a bonds key features? b. What are the provisions and sinking fund provisions? Do these provisions make bonds more or less risky? c. How is the value of any asset whose value is based on expected future cash flows determined? d. How is a bonds value determined? What is the value of a 10-year, $1,000 par value bond with a 10% annual coupon if its required return is 10%?