In your initial response you should answer the main question: If you are an investor who is looking for a corporate bond to invest to, are you going to buy a bond that you chose? To answer this question you should complete three steps:
1). Copy the bond’s quotation from the website.
2). Describe the main elements of the bond:
Coupon rate
Calculate annual coupon payment (assuming face value $1,000)
What is the frequency of coupon payments of the bond? If the frequency is greater than 1, how much is payment is going to be?
Maturity,
Rating. Explain the meaning of rating.
The last price listed in quotation
How much the investor would pay for the bond assuming $1,000 face value and using the last price listed in quotation?
Calculate the current yield of the bond assuming that par value of the bond is $1,000
How much is the YTM listed in quotations is for the bond? Explain the meaning of YTM.
Is the bond callable or not? If the bond that you chose is callable (non-callable), will it change your decision to buy it?
To find the information on bonds, click on Search in the middle of the screen, under Quick Search type the Issuer Name and the Symbol, and click SHOW RESULTS.
Another useful website on bond information is https://markets.businessinsider.com/bonds. To find the information on bonds, scroll down the page, type the name of the company in the window under Bond Finder, and click SEARCH.
3) Take a look at the balance sheet and income statement of the company. What data or ratios support your decision to buy this bond or not? You should develop a specific recommendation, with supporting rationale to explain your answer.