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BONDS Find Ford Motor Company bonds (you know how to do this, remember how we got CISCO? Now, find the F.GL Corporate bond. Assume today
BONDS Find Ford Motor Company bonds (you know how to do this, remember how we got CISCO? Now, find the "F.GL" Corporate bond. Assume today 10/15/2021 for purposes of current price.(i.e. find bond price as of 10/15) and 12/31/2021 for purposes of calculating # of periods remaining (given). You must show/label pertinent information of the bond (i.e. coupon payment, face value, etc.) employing formulas in as many settings as possible (I have to be able to follow all that you do). Coupon rate Maturity Date Offering Date Current Date Face Value Annual Coupon 20 0 1 through 99 100 ORIGINAL Bond Life periods Cash Flow Current Bond Life periods Cash Flow 0 1 through 42 43 1) What is the YTM on the bond as of today? (=rate) 2) What is the current yield on the bond based on the October 19, 2020 trades? 3) Is this bond rated investment grade or speculative grade? 4) How much money was raised by Ford in this issuance? 5) Does Ford receive cash flows from bondholders after Time 0? Yes or No. 6) If YTM were to go to 6%, what would be the price of the bond? 20 BONDS Find Ford Motor Company bonds (you know how to do this, remember how we got CISCO? Now, find the "F.GL" Corporate bond. Assume today 10/15/2021 for purposes of current price.(i.e. find bond price as of 10/15) and 12/31/2021 for purposes of calculating # of periods remaining (given). You must show/label pertinent information of the bond (i.e. coupon payment, face value, etc.) employing formulas in as many settings as possible (I have to be able to follow all that you do). Coupon rate Maturity Date Offering Date Current Date Face Value Annual Coupon 20 0 1 through 99 100 ORIGINAL Bond Life periods Cash Flow Current Bond Life periods Cash Flow 0 1 through 42 43 1) What is the YTM on the bond as of today? (=rate) 2) What is the current yield on the bond based on the October 19, 2020 trades? 3) Is this bond rated investment grade or speculative grade? 4) How much money was raised by Ford in this issuance? 5) Does Ford receive cash flows from bondholders after Time 0? Yes or No. 6) If YTM were to go to 6%, what would be the price of the bond? 20
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