Integrated Case

7-21

Western Money Management Inc.

Bond Valuation

Robert Black and Carol Alvarez are vice presidents of Western Money

Management and codirectors of the companys pension fund management

division. A major new client, the California League of Cities, has requested

that Western present an investment seminar to the mayors of the represented

cities. Black and Alvarez, who will make the presentation, have asked you to

help them by answering the following questions.

A. What are a bonds key features?

Answer: [Show S7-1 through S7-4 here.] If possible, begin this lecture by

        showing students an actual bond certificate. We show a real

        coupon bond with physical coupons. These can no longer be

       ...