Reference no: EM131210762
Bond Pricing.
All bonds have some common characteristics, but they do not always have the same contractual features. Differences in contractual provisions, and in the underlying strength of the companies backing the bonds, lead to major differences in bonds risks, prices, and expected returns. It is important to understand how bond markets actually function and what the appropriate terminology is.
Go to www.nyse.com Click on Data &Tech, under Data &Tech Resources choose Listed Quotes - scroll down, under Bonds click on View Directory. In the window "Issuer name" type the name of the company on your choice. Click Go.
In your initial response to the topic you have to answer all 8 questions.
You are expected to make your own contribution in a main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor.
- Copy the quotation of one bond that contains the price "Last Trade Price". Present these quotations in your posting.
- Describe the information that you received from the quote of the bond. You have to explain each number and symbol that appears in the bond quotation.
- Assume that par value of the bond is $1,000. What was the last price of the bond in $$$ (listed in Last Trade Price)?
- Assume that par value of the bond is $1,000. Calculate annual coupon interest payments.
- Assume that par value of the bond is $1,000. Calculate current yield of the bond.
- Assume that par value of the bond is $1,000. Assume annual coupon payments. Calculate YTM of the bond using the last price (listed in Last Trade Price). (Round the number of years to the whole number). You should use Excel or financial calculator. Show your work.
- Describe one major shortcoming for YTM and current yield.
- How would the following affect the yield on newly issued bond? Please explain your answer.
a) The bonds are callable.
b) The bonds are subordinated to the existing bond issue.
c) The bond rating is better or worse than the Moody's Aa3 that IBM anticipates.
Expected winnings for a single ticket buyer
: What are the expected winnings for a single ticket buyer? Express to at least three decimal place accuracy in dollar form (as opposed to cents).
|
Halfway between the correspondingz-scores
: Use a table of cumulative areas under the normal curve to find thez-score that corresponds to the given cumulative area. If the area is not in thetable, use the entry closest to the area. If the area is halfway between twoentries, use thez-score h..
|
Hypergeometric distribution an appropriate model
: Based on 112 observations in the table, will the hypergeometric distribution an appropriate model to represent these data? Solve the problem with you using a traditional method α of 0.05. In addition, calculate the p-value of the test.
|
Which of them is the appropriate function prototype
: The function multiplies the contents of the old Price variable by 1.1 and then stores the result in the new Price variable. Which of the following is the appropriate function prototype for this function?
|
Problem regarding the common characteristics
: All bonds have some common characteristics, but they do not always have the same contractual features. Differences in contractual provisions, and in the underlying strength of the companies backing the bonds, lead to major differences in bonds ris..
|
Identification of hazards and risks in the workplace
: Identification of hazards and risks in the workplace; Job Hazard Analysis (JHA), Failure Modes and Effects Analysis (FMEA), or Fault Tree Analysis are to be used, or some combination of these techniques.
|
Cash flow to investors
: What was the cash flow to investors from operating activity during 2014? What was the cash flow to investors from operating activity during 2014?
|
What is the operating cash flow
: Ridiculousness, Inc., has sales of $46,500, costs of $24,400, depreciation expense of $1,600, and interest expense of $1,500. If the tax rate is 35 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.)
|
Sales are generated from every
: A firm has net working capital of $365, net fixed assets of $2,263, sales of $6,000, and current liabilities of $800. How many dollars worth of sales are generated from every $1 in total assets?
|