(a) Calculate the current value of Bond L. (See Table 6.2) (b) ...

[Kikoku]

(a) Calculate the current value of Bond L. (See Table 6.2)
  (b) What will happen to the value/price as the bond approaches maturity?
 
  What will be an ideal response?

Question 2

When there are conflicts among managerial goals in U.S. markets, the most important priority is to ________.
 
  A) increase the current market value of equity
  B) keep all of the company's customers happy
  C) foster good relationships with the community
  D) maintain a safe and happy work place

[Pariscourtney]

Answer to Question 1

(a) Using Financial calculator: PMT= 90, N=5, I=6, FV=1000, CPT PV = 1,126.08
(b) The bond price will decrease and come closer to par.

Answer to Question 2

Answer: A
Explanation: A) Anglo-American markets emphasize that managers should maximize shareholders' wealth.