BUS 401 Week 2 DQ 2 Present and Future Values, and Expected Returns

BUS 401 Week 2 DQ 2 Present and Future Values, and Expected Returns

 

Investing in Bonds. Go to the Yahoo Finance Bonds Center.

Under: Features / BOND LOOKUP / Find Bonds by Name:

Type in the first letter of your last name.

Under “Type” Choose one of the “Corp” Bonds.

 

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?