Financial Management: Theory and Practice

Mini Case-5

This is a Collaborative Learning Community (CLC) assignment.

The purpose of this assignment is to explain core concepts related to fixed income securities.

Read the Chapter 5 Mini Case in Financial Management: Theory and Practice. Using complete sentences and academic vocabulary, please answer questions a through f.

Create a 5-10 slide PowerPoint presentation in which you summarize your answers from the mini case. Be sure to include graphs, charts, and trends.

Please assist with the question below and provider 1 PPT slide that includes a graph or chart. (See Rubric)

Sam Strother and Shawna Tibbs are vice presidents of Mutual of Seattle Insurance Company and co-directors of the company’s pension fund management division. An important new client, the North-Western Municipal Alliance, has requested that Mutual of Seattle present an investment seminar to the mayors of the represented cities, and Strother and Tibbs, who will make the actual presentation, have asked you to help them by answering the following questions.

How is the value of a bond determined? What is the value of a 10-year, $1,000 par value bond with a 10% annual coupon if its required rate of return is 10%?