Question
CUSIP 68389XAV7 ISIN US68389XAV73 Pay Frequency SEMI-ANNUALLY Coupon 4.3 Maturity Date 07/08/2034 Moody's Rating A1 S&P Rating A+ Price Quote 115.183 Original Issue Amount $1,750,000,000
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| Category 2: Bond Basics: Some of the information below is found in the quote above, but some of the information was leaned in our modules on bonds. | |||||||||||||||||||||||||||
| What type of bond is this (corporate, muni, treasury, etc.)? | Corporare |
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| If you invest in Oracle Bonds are you an owner or a creditor? | creditor |
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| What is the face value for this bond? | $1,750,000,000 |
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| What is the market price for this bond in dollars? | $115.183 |
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| Is the bond selling for a premium or a discount? | premium |
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| What is the coupon rate for this bond? | 4.3 |
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| If you owned this bond what is your annual dollar amount of interest? | $1.00 |
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| How often are interest payments made? | Semi-annually |
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| What is the maturity date for this bond? | 07/08/2034 |
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| Is the bond callable? | Yes |
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| What does it mean to have a callable bond? Explain in your own words.
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| Moodys has assigned a rating of A1 to Oracles long-term debt. Explain what an A1 rating means in your own words. (See ratings chart on the next page, be sure to explain both the A and the 1)
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| Calculate the current yield for this bond at this market price. | % |
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| Show your current yield work here:
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| Explain the current yield calculation and why the current yield for this bond is different than the coupon rate. Is it lower or higher? Why?
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Using Financial Accounting Information The Alternative To Debits And Credits
Authors: Porter And Norton
1st Edition
1285128257, 978-1285128252
