Instructions:

Type the company you are using for your research project into the Issuer Name box in the Quick Search. Please select one bond and answer the following questions about that bond. The face value isn't usually listed so you can assume that one bond has a face value of$1000 and that interest is paid semi-annually.

Please answer these questions about your chosen bond:

1. What is the SYMBOL for your bond?
2. What is the current selling price of that bondIN DOLLARS.You will have to calculate this dollar amount, the bond price listed in the results is a percentage of the face value (see your bond reading material).Apply that percentage to a $1000 face value bond. Is it more or less than the face value?
3. What is the semi-annual interest payment in dollars?
4. Look at the bond maturity, how much will you earn in total interest if the bond is held until maturity, and what is the value of those payments in present value dollars?This is the only calculation that will require a PV calculation.
5. Calculate the current yield on this bond. This site provides all the data you need - current selling price, par value of $1000, and coupon rate.
6. If you are an investor who is looking for a bond to invest to, are you going to buy a bond that you chose? Why? What factors affected your decision? Use the information you've learned about valuing bonds this week to answer this question.

Here is the link to the web page you will use to find a bond for your company:

http://finra-markets.morningstar.com/BondCenter/Default.jsp?part=3

I chose Microsoft :

MICROSOFT CORP

Next Call Date 08/03/2025

Last Trade Price $110.80

Last Trade Yield .676%

Last Trade Date 02/05/2021

Issue Elements

Coupon Rate 3.125%

Issue Elements

Offering Date 10/29/2015

Dated Date 11/03/2015

First Coupon Date 05/03/2016

Original Offering* $3,000,000.00

Amount Outstanding* $3,000,000.00

Payment Frequency - Semi-Annual

Day Count - 30/360

Put & Redemption Provisions

Call Date 08/03/2025

Call Price $100.00

Call Frequency Continuously

Bond Elements

Original Maturity Size* 3,000,000.00

Amount Outstanding Size* 3,000,000.00

Yield at Offering 3.13%

Price at Offering $99.97

Coupon Type Fixed

PLEASE H ELP!