Assignment Details
Bonds are utilized to raise debt capital for the largest issuers of debt, such as the following:
U.S. government
State and local governments
Corporations
The buyers of that debt are primarily large institutional investors, such as the following:
Pension funds
Insurance companies
Banks
Corporations
Mutual funds
Individual investors
In this assignment, you are a potential investor on a quest to review the attributes of a bond for investment purposes. You are required to do the following:
Prepare a bond analysis report, which analyzes all of the attributes of a bond currently in the marketplace
Compare that bond to another bond
Determine whether the bond is a good purchase
This Web page provides a bond screener, and you can select a bond here. Select any bond, and research the available information to answer the following questions:
What type of bond did you choose (e.g., corporate, municipal, or others)?
What is the maturity date for your bond? What is the significance of the maturity date?
What is your bond’s rating? What it the significance of the rating?
What is your bond’s yield to maturity? What is the significance of yield to maturity?
What is your bond’s coupon rate? What is the significance of the coupon rate?
Based on the bond valuation, is this a par bond, a premium bond, or a discount bond?
Compare the attributes of this bond with those of another bond. Would you consider purchasing this bond? If so, why?
