Module $3$ Assignment: Bonds and Stock Valuations

Snowbirds Resort, Inc. has a chain of facilities located in the southern part of the United States that caters to clients who generally live in northern states who want to escape the cold of winter. To finance their operations, the company offers a mix of investment bonds and stock offerings. In order to entice investors to the company, management needs to provide information on the performance of the bonds offered, as well as predictions for stock valuation.

Two new bonds are being offered to investors. One bond has a $10$ year maturity, and the second has a $30$ year maturity. Management has asked you to write up the data on the bonds so that it can be distributed as part of the investor package. This information for each of the bonds includes the number of periods until it is callable, the periodic yield, annual coupon rate, and other areas of interest for investor evaluation. The information for each bond is outlined below.

Directions: For each of the bonds, calculate the data for each item criteria outlined below. Enter your data to the blue cells. Use Excel to aid you with your calculations and refer to the provided "Hints" for your calculations. Answer the Analysis Question once all calculations have been completed.

Bond #$1$: $10$ Year Maturity

Bond #$1$ is a $10$ year, $4\mathrm{.}5\%$ semiannual coupon bond. It has a par$/$face value of $$5,000$ and may be called in $6$ years at a call price of $$7,500.$ The bond sells for $$5,250.$ Complete the information in the table below.

Based on the bond information above, calculate the following information for Bond #$1$