1. Search for bond information go to fire at http://finra-markets.morningstar.com/bondcenter/default.jsp and click on search in the issuer name box, type in Microsoft, then show results you will see Microsoft’s different bond issues. Choose 3 issues with different maturities (one with shorter maturity (1-5 years to maturity), one with medium maturity, and one with longer maturity. Record in a table issuer name, symbol, coupon, maturity, ratings from moody’s, and yield. repeat the above search process with issuer “clear channel communications inc” and also record issuer name, symbol, coupon, maturity, ratings from moody’s, and yield for the bond issues by this company.

2. For the three bond issues you recorded for Microsoft: what is the relationship between bond maturity and yield you observe?

3. For both Microsoft and clear channel communications bond issues: what is the relationship between bond rating and yield you observe?

4. for bonds issued by clear channel communications: do all their bond issues have the same rating? If you can, state why that could happen.

Answer rating: 100% (QA)

The Relationship between Bond Maturity and Yield Remember that speculators dont generally purchase recently issued securities and relying upon economic situations these bonds can be acquired at a reba... View the full answer