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Anadarko Bond Pricing: Assume, you are the financial manager of Anadarko Petroleum. You have decided to sell new bonds to fund a new petroleum project.
Anadarko Bond Pricing: Assume, you are the financial manager of Anadarko Petroleum. You have decided to sell new bonds to fund a new petroleum project. You would like to make an interest payment of $65 per year per bond on a face value of $1,000. The bonds will mature 30 years from today. From the Bond Center in http://finance.yahoo.com/, identify a comparable bond issued by Anadarko that has maturity closest to 30 years. Comparable firms can be Apache Inc., Devon Energy, and Marathon Oil. Use YTM (i.e., yield to maturity or market interest rate) for that comparable bond issue to price Anadarkos new bond. [To access bond data, click on Market Data, click on Bonds, click on Bond Screener, select Corporate Bond, and look for a comparable bond on the list]
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