You are vice president of Money Management and in charge of pension fund division. A major new client, AA Berhad has requested Money Management to present in an investment seminar. You will need to prepare the following questions for the seminar.

What are a bond's key features?

How is the value of any asset be determined?

How does the equation for valuing a bond change if semiannual payments are made? Find the value of a 10-year, semi-annual payment, 10% coupon bond if nominal rd = 13%.

Does the yield to maturity represent the promised or expected return on the bond? Explain.

What factors determine a company's bond rating?