Question
Help me understand and answer these questions for Lockheed Martin Find the current bond princes What were the last prices of the bonds (listed in
Help me understand and answer these questions for Lockheed Martin
Find the current bond princes
What were the last prices of the bonds (listed in the Last Sale column)? Assume that par
value of the bond is $1,000. How much the investor will pay for the bond if he/she
purchased the bond at the Price listed in the Last Sale column. Show your work in your
project.
2. Assume that par value of the bond is $1,000. Calculate the annual coupon interest
payments. Show your work in your project.
3. Assume that par value of the bond is $1,000. Calculate the current yield of the bonds.
Show your work in your project.
4. How much is the YTM listed in quotations of the bonds (in the Last Sale column - Yield)
(no calculations are required for this question?
a) If you are going to buy a bond issued by lockheed Martin, which bond would
you choose? Why?
b) Are these bonds callable? If the bonds that you chose are callable (non-callable),
will it change your decision to buy them?
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