Bonds – Present and Future Values, and Expected Returns

*****PLEASE ANSWER EACH QUESTION****

 

 

Go to the Yahoo Finance Bonds Center.

 

 

1. Under: Bonds Center click Bond Screener:
2. Click the Corporate check box under Bond Type then click Find Bonds.
3. 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?  

 

***Please follow directions precisely***