Question: Evaluate your selected bonds by performing the following calculations. Note: Prices are quoted in dollars / $100 Par, so feel free to make the Par

Evaluate your selected bonds by performing the following calculations.  Note: Prices are quoted in dollars / $100 Par, so feel free to make the Par value adjustment to $100, or adjust the payment and prices to reflect $1000 Par.  In the simplest of terms, you can think of the prices as reflecting % of Par.  If you base off $100 Par, or $1000 Par, and stay consistent, you will get the correct answer.

  1. Yield to Maturity at current price
  2. Current Yield at current price
  3. Current Value assuming the appropriate discount rate = 7%
  4. Expected Value in 5 Years if the appropriate discount rate remains 7%
  5. Expected Value in 5 Years if the appropriate discount rate increases to 10%
  6. Expected Value in 5 Years if the appropriate discount rate falls to 5

 

 

DescriptionSectorCouponTypeFrequencyYears to MaturityCurrent Price (per $100 par)MoodyS&P
BATH &BODY WORKS INC NOTE CALL MAKE WHOLE, 7.600%, 15- JUL-2037Retail Trade6.70%FixedSemi-Annually14$84.90 B1B+
TARGET CORP NOTE CALL MAKE WHOLE, 4.000%, 01-JUL-2042Retail Trade3.50%FixedSemi-Annually19$94.37 A2A

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