• Name - Comcast Cable Communications INC
• Symbol - CMCS.GG
• Coupon - 8.500%
• Callable - yes
• Last price - $ 119.90
• Yield - 4.017%
• Maturity Date - 05/01/2027
• Bond Type - Corporate Bond

Part 2.

* Coupon rate - 8.500%

* Calculate annual coupon payment (assuming face value $1,000) -

1000 * 8.5%= $85

*What is the frequency of coupon payments of the bond? If the frequency is greater than 1, how much is payment is going to be?

85/2 = $42.5

*Maturity, - 05/01/2027

*Rating. Explain the meaning of rating.

Moody's Rating - A3 (02/28/2018). Standard & Poor Rating - A- (02/14/2013)

*The last price listed in quotation-

$119.90

*How would much the investor pay for the bond assuming $1,000 face value and using the last price listed in quotation? 1

119.90*1000/100= 1,199

*Calculate thecurrentyield of the bond assuming that par value of the bond is $1,000

4.017%*1,000=$40.17

40.17/119.90=0.3351

0.3351*100=33.51

*How much is the YTM listed in quotations is for the bond? Explain the meaning of YTM.

40.17/2=20.08

119.90

1000

YTM= 0.3351*2=0.6702

0.6702*100=67.02

*Is the bond callable or not? If the bond that you chose is callable (non-callable), will it change your decision to buy it?

No, the bond is callable because of it being a not really no difference in assets matches up with their liabilities.

https://finra-markets.morningstar.com/BondCenter/Default.jsp

Question

Would you prefer to buy the bond issued by the company chosen? You should develop a specific recommendation, with supporting rationale to explain your answer.

Answer rating: 100% (QA)

ANSWER Based on the information provided heres a breakdown of the key points relevant to deciding whether to buy the Comcast Cable Communications INC ... View the full answer