Bonds Valuation Guidelines and Rubric

Interest rate risk is dependent on fluctuating interest rates causing change in bond value. How much interest rate risk a bond has depends on

how sensitive its price is to interest rate changes. For this milestone, you will examine the interest rate risk of the company you are analyzing for

your final project. You will see that the sensitivity directly depends on two things: the time to maturity and the coupon rate.

$1.$ Search for the bonds of starbucks at Financial Industry Regulatory Authority $|$ Bonds

$2.$ Sort by the maturity $($by clicking on the maturity$)$

Then, write a summary of your findings that addresses the following critical elements:

$$ Identify the longest and shortest maturity of the bonds issued

$$ Describe any difference in prices, coupon rates, and ratings of the bonds that you observe when you sort them by maturity

$$ Explain what this exercise tells you about the interest rate risk of longer$-$term bonds

Maturity Identifies the longest and shortest maturity

of the bonds issued.

Differences Describes differences in prices, coupon

rates, and ratings of the bonds when sorted

by maturity.

FIN $3313$: Corporate Finance

Interest Rate Risk Explains what exercise demonstrates about

the interest rate risk of longer$-$term bonds.

Mechanics No grammar or spelling errors that distract

the reader from the content. All sources

used are cited using APA Style, $6$th ed$.$

Minor errors in grammar or spelling that

distract the reader from the content. All

sources used are cited using APA Style, $6$th

ed$.$

Major errors in grammar or spelling that

distract the reader from the content and$/$or

errors made in citing sources using APA

Style, $6$th ed