PLEASE HELP ANSWER #14 WHICH IS HIGHLIGHTED

CUSIP Category 1: Bond Quote 63946BAJO NBC Universal Media, LLC is an American ISIN US63946BAJ98 multinational mass media and entertainment conglomerate corporation owned by Comcast Pay Frequency SEMI-ANNUALLY and headquartered at 30 Rockefeller Plaza in Coupon 4.450 Midtown Manhattan, New York City, United States. NBCUniversal is primarily involved in Maturity Date 1/15/2043 the media and entertainment industry. Moody's Rating A3 S&P Rating A- Investor relations page: Market Price Quote 105.745 https://corporate.comcast.com/companybcuniv ersal Minimum Quantity 200 Bond Type Corporate Sector Telephones Callable YES Category 2: Bond Basics: Some of the information below is found in the quote above, but some of the information was leaned in our modules on bonds. 1. What type of bond is this (corporate, muni, treasury, etc.)? Corporate 2. If you invest in NBC Universal Media Bonds is your role as an owner or a Creditor creditor? 3. What is the face value for this bond? $ 100 4. What is the market price for this bond in dollars? $ 105.745 5. Is the bond selling for a premium or a discount? Premium 6. What is the coupon rate for this bond? (include the percent sign) 4.45% What is the annual dollar amount of interest, including cents, paid per bond? $4.45 How often are interest payments made? Semi Annual 9. What is the maturity date for this bond? 01/15/2043 10. Is the bond callable? Yes 11. What does it mean to have a callable bond? Explain in your own words. A callable bond is one where the borrower has the right but is not obligated to pay the bond amount before the due date. When the borrower finds that the current market rate of interest is less than the interest rate to be on the bond amount, the borrower will pay the bond amount by raising the debt from the current market. 12. Moody's has assigned a rating of A3 to this long-term debt. Explain what an A3 rating means in your own words. (See ratings chart on the next page, be sure to explain all parts of the rating.) An A3 is the highest rating possible that can be assigned by any of the major credit rating agencies to an issuer's bond. 13. What is the minimum quantity? $1000 What do you think minimum quantity means? The minimum investment required to purchase a single bond. 14. Calculate the current yield for this bond at this market price. Show you work: Current yield = annual interest divided by market price. 7. 8