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%.

Two Separate Discussion Post:

 

1:

Financial Website and Article Review

In today’s rapidly changing and competitive business world, it is in important to stay current with financial news and events.  Visit a financial-related website like Forbes.com, CNNMoney.com, TheStreet.com, Bloomberg.com, or SmartMoney.com.  These are suggested websites and you can select another one if you wish.  Browse your chosen website and read at least two financial-related articles.  Evaluate and summarize two articles and state what you learned.  If you were discussing the article with a colleague, what three important points would you want to explain? How can knowledge of what you learned help you in your career?

Guided Response: Review several of your classmates’ posts. Respond to at least two classmates by sharing whether you agree or disagree with how they arrived at their answers. Are there any alternative financing options that may be even better?

Carefully review the Discussion Forum Grading Rubric for the criteria that will be used to evaluate this Discussion Thread.

2:

Investing in Bonds

Go to the FINRA Bonds Quick Search.

  • Click the Corporate check box under Bond Type then click Show Results.
  • 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?

Carefully review the Discussion Forum Grading Rubric for the criteria that will be used to evaluate this Discussion Thread.

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