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2. (10) Suppose you observe the following information at the FINRA website regarding bonds issued by Advanced Micro Devices. ADVANCED MICRO DEVICES INC Coupon Rate
2. (10) Suppose you observe the following information at the FINRA website regarding bonds issued by Advanced Micro Devices. ADVANCED MICRO DEVICES INC Coupon Rate Maturity Date Symbol CUSIP Next Call Date Callable 7 % 7/1/2024 AMD4155878 007903BCO 7/1/2019 Last Trade Price Last Trade Yield Last Trade Date US Treasury Yield $63.50 8/25/2015 Source: http://www.finra.org/ Yes Agency Credit Rating (Publication Date) Moody's Rating Caa2 (07/28/2015) Standard & Poor's Rating B- (04/20/2015) Fitch Rating B- (04/20/2015) Source: http://www.finra.org/ What is the yield to maturity of this bond? b. What are the risk factors the yield you determined in part a offers rewards based on the information above? Explain. c. On 8/17/2018, the price (last trade price) of this bond was $106.00. What kind of a change in factor(s) you identified in part b would lead to the price on 8/17/2018? Which factor may be the most significant? Explain. 2. (10) Suppose you observe the following information at the FINRA website regarding bonds issued by Advanced Micro Devices. ADVANCED MICRO DEVICES INC Coupon Rate Maturity Date Symbol CUSIP Next Call Date Callable 7 % 7/1/2024 AMD4155878 007903BCO 7/1/2019 Last Trade Price Last Trade Yield Last Trade Date US Treasury Yield $63.50 8/25/2015 Source: http://www.finra.org/ Yes Agency Credit Rating (Publication Date) Moody's Rating Caa2 (07/28/2015) Standard & Poor's Rating B- (04/20/2015) Fitch Rating B- (04/20/2015) Source: http://www.finra.org/ What is the yield to maturity of this bond? b. What are the risk factors the yield you determined in part a offers rewards based on the information above? Explain. c. On 8/17/2018, the price (last trade price) of this bond was $106.00. What kind of a change in factor(s) you identified in part b would lead to the price on 8/17/2018? Which factor may be the most significant? Explain
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