Question
1) you will analyse one of the firm's outstanding bonds. Firstly, calculate the credit spread of this bond, using the yield on Treasury bonds of
1) you will analyse one of the firm's outstanding bonds. Firstly, calculate the credit spread of this bond, using the yield on Treasury bonds of comparable duration. You will need to compute the rate of return that investors currently require for holding this bond. To simplify your calculations, assume that the last coupon payment has just been made. Estimate the bond's price one year from now (assume that interest rates remain constant), and provide commentary. Finally, provide a credit rating for the firm's bonds.
Use the link Below:
https://markets.businessinsider.com/bonds/apple_incad-notes_201626-bond-2026-au3cb0237881
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Get StartedRecommended Textbook for
Fundamentals of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
11th edition
77861701, 978-0077861704
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