bus 401 DQ 2

bus 401 DQ 2

 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?  

Guided Response: Review several of your classmates’ posts. Respond to at least two classmates by sharing your view of their conclusion. Are there any other factors that you can offer that may explain why the bond is selling at a premium or discount?