Question: This week focused on bonds and equity valuation. With the rise of low transaction cost brokers and applications such as Robinhood, many individuals have experience
This week focused on bonds and equity valuation. With the rise of low transaction cost brokers and applications such as Robinhood, many individuals have experience buying stocks, mutual funds, and even cryptocurrencies. Bonds, however, are quoted differently and not purchased as often by individual (retail) investors.
For this week's discussion post, select one company listed on the Dow Jones Industrial. You can find the list of thirty companies, stock symbol, and recent price here:CNBC Dow.
After selecting a company, go toFINRA's (Financial Industry Regulatory Authority) Bond Center. You will want to click on "search" to determine if the company has issued debt (bonds). Please answer the following in your post:
- Introduce your selected company (stock symbol). You should identify what the company sells or produces, where they are headquartered or located, and your experience (if any) as a consumer with the company.
- Using the Bond Center, discuss the different bonds currently trading (maturities later than the current date). Tip: Sorting by maturity might help organize the list. You do not need the exact number if multiple, but provide an estimate of how many different bonds are available.
- Select one of the bonds and describe the last price (100 is par), yield, coupon, calculate payment on $1,000 face value, and ratings from Moody's and S&P.
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