Is the bond selling at a premium or a discount and why

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Investing in Bonds

Go to the FINRA Bonds Quick Search.

Link: https://finra-markets.morningstar.com/BondCenter/Screener.jsp

• Click the Corporate check box under Bond Type then click Show Results.
• Choose any bond.

Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer. What other factors may influence the value of a bond?

Reference no: EM131150614

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