Question
Find a quote for MACY's bond and answer the following questions. What is the quotation of one bond. Describe the information that you received from
Find a quote for MACY's bond and answer the following questions. What is the quotation of one bond. Describe the information that you received from the quote of the bond. Explain each number and symbol that appears in the bond quotation. Assume that par value of the bond is $1,000. What was the last price of the bond in $$$ (listed in "Last" trade price)? Assume that par value of the bond is $1,000. Calculate annual coupon interest payments. Assume that par value of the bond is $1,000. Calculate current yield of the bond. Assume that par value of the bond is $1,000. Assume annual coupon payments. Calculate YTM of the bond using the last price (listed in Last trade price). (Round the number of years to the whole number). You should use Excel or financial calculator. Show your work. Describe one major shortcoming for YTM and current yield. How would the following affect the yield on newly issued bond? Please explain your answer. a) The bonds are callable. b) The bonds are subordinated to the existing bond issue. c) The bond rating is better or worse than the Moody's Aa3 that the company anticipates.
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