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From the list of bonds below, each team member will choose 2 to evaluate. There should not be any overlap between teammates' selected bonds, so

From the list of bonds below, each team member will choose 2 to evaluate. There should not be any overlap between teammates' selected bonds, so make sure you check this post and post your choices here before beginning your analysis.

Evaluate your selected bonds by performing the following calculations. Note: Prices are quoted in dollars / $100 Par, so feel free to make the Par value adjustment to $100, or adjust the payment and prices to reflect $1000 Par. In the simplest of terms, you can think of the prices as reflecting % of Par. If you base off $100 Par, or $1000 Par, and stay consistent, you will get the correct answer.

  1. Yield to Maturity at current price
  2. Current Yield at current price
  3. Current Value assuming the appropriate discount rate = 7%
  4. Expected Value in 5 Years if the appropriate discount rate remains 7%
  5. Expected Value in 5 Years if the appropriate discount rate increases to 10%
  6. Expected Value in 5 Years if the appropriate discount rate falls to 5%
Description Sector Type Frequency Years to Maturity Current Price (per $100 par) Moody S&P
JOHNSON &JOHNSON NOTE CALL MAKE WHOLE, 5.950%, 15-AUG-2037 Manufacturing Fixed Semi-Annually 14 $125.35 AAA AAA
MCDONALDS CORP MTN CALL MAKE WHOLE, 3.700%, 15-FEB-2042 Retail Trade Fixed Semi-Annually 19 $89.73 BAA1 BBB+

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