Question

4) For this question you will be using the FINRA website we reviewed in class. The link to the website is on slide 35. Your task will be to select two different bonds. The bonds must be issued by different companies and should not be the same bonds as your friends have selected. I recommend just randomly selecting bonds as the best approach. For each bond answer the following: What is the organization's name? What is the bond's symbol? What is the coupon rate? What is the last price? What is the last yield? What is the bond type? What is the bond rating (not all bonds are rated)? Is the bond callable? Based on the information you gathered, which bond would you invest in and why? There is not a right or wrong answer to this question, you but should have logic behind your answer.

MUST BE DONE ON EXCEL USING FORMULAS

Answer 1

ANSWER-

Following are the bonds' details (from FINRA website)-

1) * Organisation- APPLE INC (05/13/2025)

* Bond's symbol - AAPL4242665

* Coupon Rate - 3.2%

* Last Price - $107.40

* Last Yield - 1.711%

* Bond Type - US Corporate Debentures

* Bond Rating - Aa1 by Moody's; AA+ by Standard and Poor's

* Bond Callable - Yes

2) * Organisation- HEWLETT PACKARD CO (09/15/2041)

* Bond's symbol - HPQ.AI

* Coupon Rate - 6%

* Last Price - $117

* Last Yield - 4.733%

* Bond Type - US Corporate Debentures

* Bond Rating - Baa2 by Moody's; BBB by Standard and Poor's

* Bond Callable - Yes

Analysis- I would prefer APPLE INC Bond to the second one as the credit risk is much less with the former one (due to it's good credit ratings), albeit lower coupon yields than the HEWLETT PACKARD CO bond but with high credit risk associated with the later one.