Question

Your client comes to you with the following bond portfolio and wants to know which bonds that he / she should sell to buy into a high quality dividend strategy that is currently producing a 3% yield. Note that the yield to maturity of the bond that you would sell has to be lower than the strategy that you are moving into.
Please issue a memo to the client outlying your considerations and your recommendation.
Description Coupon Par Value Current Price Maturity
Ohio State School District (Denton) 5.00% $100,000 $109.998 8/15/2021
Ohio State School District (General) 5.00% $70,000 $109.047 3/15/2016
Energy North Washington Electric 5.50% $80,000 $108.398 7/01/2016
Florida State Turnpike Authority 5.00% $80,000 $107.978 7/01/2016
IPS Multi-School Building 5.25% $125,000 $107.878 7/15/2025
Ohio Muni Electric Generation 5.00% $75,000 $103.999 2/15/2023
Orlando-Orange Expressway 5.00% $100,000 $107.476 7/01/2015
South Carolina Transportation 5.25% $90,000 $109.766 10/1/2017
Virginia Building Education 5.00% $100,000 $100.204 7/01/2014
Virginia Transportation 5.00% $75,000 $110.611 5/15/2016



$1.99
Sales0
Views128
Comments0
  • CreatedAugust 26, 2013
  • Files Included
Post your question
5000