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