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Bond transaction, bond ratings Bond transactions are reported on FINRA's TRACE service, which was the source of the data for Table 3.6. Use the Advanced

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Bond transactions are reported on FINRA's TRACE service, which was the source of the data for Table 3.6. Use the Advanced Search facility in TRACE to find bond prices for Johnson & Johnson (JNJ), Walmart (WMT), Disney (DIS), SunTrust Banks (STI), and U.S. Steel (X). If possible, exclude callable issues that the company can buy back. Have the bond ratings changed? What has happened to the yields of these companies' bonds? (You will find that bonds issued by the same company may have very different yields, so you will need to use your best judgment to answer this second question.) (Reference Table 3.6) S&P Rating Issuer Name Johnson & Johnson Walmart Alabama Power Dow Chemical Rosetta Restaurants Elizabeth Arden Alpha Natural Resouroes Coupon (%) 3.55 4.25 3.05 8.85 5.625 7.375 6.25 Maturity 2021 2021 2021 2021 2021 2021 2021 Price (%) 108.35 11044 105.84 132.39 97.00 6.25 50.20 Yield (%) 2.16 2.48 2.97 3.49 6.20 8.14 20.37 TABLE 3.6 Prices and yields of a sample of corporate bonds. Source Bond transactions reported on FINRA's TRACE service: http://finra-markets morningstar.com/BondCenter/Screener.jsp Bond transactions are reported on FINRA's TRACE service, which was the source of the data for Table 3.6. Use the Advanced Search facility in TRACE to find bond prices for Johnson & Johnson (JNJ), Walmart (WMT), Disney (DIS), SunTrust Banks (STI), and U.S. Steel (X). If possible, exclude callable issues that the company can buy back. Have the bond ratings changed? What has happened to the yields of these companies' bonds? (You will find that bonds issued by the same company may have very different yields, so you will need to use your best judgment to answer this second question.) (Reference Table 3.6) S&P Rating Issuer Name Johnson & Johnson Walmart Alabama Power Dow Chemical Rosetta Restaurants Elizabeth Arden Alpha Natural Resouroes Coupon (%) 3.55 4.25 3.05 8.85 5.625 7.375 6.25 Maturity 2021 2021 2021 2021 2021 2021 2021 Price (%) 108.35 11044 105.84 132.39 97.00 6.25 50.20 Yield (%) 2.16 2.48 2.97 3.49 6.20 8.14 20.37 TABLE 3.6 Prices and yields of a sample of corporate bonds. Source Bond transactions reported on FINRA's TRACE service: http://finra-markets morningstar.com/BondCenter/Screener.jsp

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