Homework Pro only

Primary Task Response: Your first task is to post your own Key Assignment Outline to the discussion area so that other students are able to review your plan. Attach your document to the main discussion post, and include any notes that you feel are appropriate. The purpose of this assignment is to help improve the quality of the Key Assignment Draft that you will complete next week.

Part 2

In this Phase, you will be discussing the third of the primary principles of finance known as valuation. This principle brings together the 2 other principles that were discussed earlier: the time value of money and risk and return.

In your initial post, identify and recommend at least 1 credible Web site that an investor can visit to find the current market value of bonds being traded, and address at least 3 of the following:

• What is the concept of valuation, and how does it incorporate the time value of money and the risk of return principles?
• What is a bond, and what are the variables that are required to calculate the current market value of a bond?
• What are the 2 cash flows that are generally associated with bonds, and why is the present value of these cash flows less than the future value of these cash flows?
• Explain at least 1 of the methods that can be used to approximate the current value of a bond.
• Discuss the conditions where a bond would trade at par, at a discount, and at a premium.

Be sure to document your posts with in-text citations, credible sources, and properly listed references.