VALUATION AND CHARACTERISTICS OF BONDS
PROBLEM 7-1
BOND VALUATION
DATA
Years	20
Face value	1.000
Interest	8,0%	80
ROR	7,0%
Present Value =	847,52
	258,42
PROBLEM 7-3
BOND VALUATION
DATA
Years	20
Face value	1.000
Interest	7,0%	70
ROR	10,0%
Market price	875
A)
Expected rate of return
B)
Present value =
PROBLEM 7-5
BOND VALUATION
DATA
Years	10
Face value	1.000
Interest	6,0%	60
ROR	8,0%
Today's value	1.060
A)
Present value =
B)
Year	1
ROR in one yr =
PROBLEM 7-7
BOND RELATIONSHIP
DATA
	Series A	Series B
Interest	55	55
Years	12	1
Future value	1.000	1.000
A)	Series A	Series B
ROR	4,0%	4,0%
Present value
ROR	7,0%	7,0%
Present value
ROR	10,0%	10,0%
Present value
PROBLEM 7-12
BOND VALUATION-ZERO COUPON
Years	7
Interest	6,0%
Bond	1.000
The value of bond
PROBLEM 7-19
EXPECTED RATE OF RETURN AND CURRENT YIELD
DATA
Market value	1.371
Coupon interest rate	9,15%
Number of years	21
Par value	1.000
Yield to maturity
Current yield