What are a bond key features

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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.

a. What are a bond's key features?

b. How is the value of any asset be determined?

c. 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%.

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

e. What factors determine a company's bond rating?

Reference no: EM132499437

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