Discussion Week 4-Explain the information that is contained in the bond quotation – what does it mean?..

Discussion Week 4Coupon Rate

Maturity

Symbol

CUSIP

Next
Call Date
—

Callable
—

Last
Trade Price

Last
Trade Yield

Last
Trade Date

US
Treasury Yield
—

Explain the information that is contained in the
bond quotation – what does it mean?
What was the last price of the (assume $1,000 par
value)?
What is the total of the annual coupon interest
payments on the bond?

What is the current yield of the bond? Why
is it above or below the coupon rate?
What is the YTM of the bond using the last price
(listed as Previous Close).
How would the following affect the yield on
a newly issued bond?
a) The
bond is callable?

b) The
bond is subordinated to the existing bond issue?
c) The
bond rating is better or worse than its current rating?
Would you invest in this bond – why or why
not?