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Week 2 Discussion 2: Investing in Bonds…….solved

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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?
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?