last prices of the bonds (listed in the Last Sale column)? Assume that par value of the
Question:
last prices of the bonds (listed in the Last Sale column)? Assume that par value of the bond is $1,000.
How much the investor will pay for the bond if he/she purchased the bond at the Price listed in the Last Sale column. Show your work in your project
.2.Assume that par value of the bond is $1,000. Calculate the annual coupon interest payments. Show your work in your project.
3.Assume that par value of the bond is $1,000. Calculate the current yield of the bonds.Show your work in your project.
4.How much is the YTM listed in quotations of the bonds (in the Last Sale column - Yield) (no calculations are required for this question?
a)If you are going to buy a bond issued by THE COMPANY, which bond would you choose? Why?
b)Are these bonds callable? If the bonds that you chose are callable (non-callable), will it change your decision to buy them?
c)If you are an investor who is looking for a bond to invest in, are you going to buy a bond that you chose?
Take a look at the balance sheet and income statement of the company. What data or ratios support your decision to buy this bond or not?
Bond 1) http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C754067&symbol=VZ4627701
Bond 2) http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C732263&symbol=VZ4581325
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta