Question
Bond Coupon Maturity Date Last Price Last YIELD NFLX4219004 5.75% 03/01/2024 $112.74 1.16% NFLX4901373 4.88% 06/15/2030 $116.00 2.82% 1. What were the last prices of
Bond | Coupon | Maturity Date | Last Price | Last YIELD |
NFLX4219004 | 5.75% | 03/01/2024 | $112.74 | 1.16% |
NFLX4901373 | 4.88% | 06/15/2030 | $116.00 | 2.82% |
1. What were the last prices of the bonds (listed in the Last Sale column)? Assume that par value of the bond is $1,000. How much the investor will pay for the bond if he/she purchased the bond at the Price listed in the Last Sale column. Show your work in your project. 2. Assume that par value of the bond is $1,000. Calculate the annual coupon interest payments. Show your work in your project. 3. Assume that par value of the bond is $1,000. Calculate the current yield of the bonds. Show your work in your project. 4. How much is the YTM listed in quotations of the bonds (in the Last Sale column - Yield) (no calculations are required for this question?
) Are these bonds callable? If the bonds that you chose are callable (non-callable), will it change your decision to buy them? c) If you are an investor who is looking for a bond to invest in, are you going to buy a bond that you chose? Take a look at the balance sheet and income statement of the company. What data or ratios support your decision to buy this bond or not? You may want to incorporate the results of the Research Project Part 1, as well as the results of the financial leverage ratios to answer this question. You should develop a specific recommendation, with supporting rationale for the investor to explain your
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