Evaluation of a Corporate bond Purpose: No checklist can serve as a foolproof guide for choosing a corporate bond. However, the following questions will help you understand a typical bond quote. Investing in individual bonds would require more specialized education than this beginning class provides. Instructions: Review the Bond Quote provided. Answer the questions about the Bond issue. Not all of the information will come from the quote. Some answers will come from your knowledge of bonds from the course. Category 1: Bond Quote CUSIP 63946BAJ9 NBC Universal Media, LLC is an American ISIN US63946BAJ98 multinational mass media and entertainment conglomerate corporation owned by Comcast Pay Frequency SEMI-ANNUALLY and headquartered at 30 Rockefeller Plaza in Coupon 4.450 Midtown Manhattan, New York City, United States. NBCUniversal is primarily involved in Maturity Date 1/15/2043 the media and entertainment industry. Moody's Rating A3 S&P Rating A- Investor relations page: Market Price Quote 105.745 https://corporate.comcast.com/companybcuniv ersal Minimum Quantity 200 Bond Type Corporate Sector Telephones Callable YESCategory 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. 1 . What type of bond is this (corporate, muni, treasury, etc.)? 2. If you invest in NBC Universal Media Bonds is your role as an owner or a creditor? 3. What is the face value for this bond? $ 4. What is the market price for this bond in dollars? CA 5. Is the bond selling for a premium or a discount? 6. What is the coupon rate for this bond? (include the percent sign) 7. What is the annual dollar amount of interest, including cents, paid per bond? 8. How often are interest payments made? 9 . What is the maturity date for this bond? 10 Is the bond callable? 11. What does it mean to have a callable bond? Explain in your own words. 12. Moody's has assigned a rating of A3 to this long-term debt. Explain what an A3 rating means in your own words. (See ratings chart on the next page, be sure to explain all parts of the rating.) 13. What is the minimum quantity? What do you think minimum quantity means? 14. Calculate the current yield for this bond at this market price. Show you work: 15. 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