Using Hershey's bond information below can you please help me with these questions? How much are the
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Question:
Using Hershey's bond information below can you please help me with these questions?
How much are the annual coupon interest payments for these bonds?
- How much is the YTM listed in the quotes of the bonds (in the Last Sale column - Yield) (no calculations are required for this question).
- When do these bonds mature?
- Calculate the Macaulay duration and Modified duration of these bonds. You should use on-line Duration calculator. https://dqydj.com/bond-duration-calculator/. Present the results of your calculations in your posting. How the changes of interest rates will affect the bonds' prices?
- Go to the Internet and find the forecast of interest rates (short-term and long-term). Create the forecast of the bonds' prices using Modified duration you calculated and forecast of the interest rates. Explain your results.
- Please answer the flowing questions:
- If you are going to buy a bond, which bond would you choose? Why?
- Are there any connections between economic trends analysis, bond market performance, and investment decisions? Please explain your answer.
- Take a look at the balance sheet and income statement of the companies. What data or ratios support your decision to buy this bond or not?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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