Table 6.1

Bonds	Per Value	Annual coupon interest rate	Years of Maturity	Require return rate
L	1000	9	5	6
M	100	10	8	10
N	500	18	7	15

1. Calculate the current value of Bond L. (See Table 6.1). What will happen to the value/price as the bond approaches maturity?

2. Calculate the current value of Bond M if the time of maturity is six years. (See Table 6.1)

3. Calculate the current value of Bond N. (See Table 6.1). What will happen to value/price as the bond approaches maturity?