Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please take a look at the image below on bond pricing information from FINRA. This is a bond issued by Tesla with a coupon rate

image text in transcribed

Please take a look at the image below on bond pricing information from FINRA. This is a bond issued by Tesla with a coupon rate of 2.375% maturing 3/15/2022. Can you explain why this bond would have such a large negative yield at -190.05%? Last Updated: 09/22/2021 Bond Detail Lookup Symbot TSLA4474416 GO TESLA INC ADD TO WATCHLIST Maturity Data Coupon Rate 2.375" Next Call Date Callable CUSIP 881 03/15/2022 Symbol TSLA447441 Last Trade Price Last Trade Yield Last Trade Date US Treasury $1,100.00 -190.050% 09/21/2021 Yield Trade History Clues: 1. Keep in mind the price quotation is based on $100 par (face) value, but the actual par value is $1,000. This means that on the day of pricing information you would need to spend at least ($1,100 / $100)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A One Year Accounting Course

Authors: Trevor Gambling

21st Edition

0080130275, 9780080130279

More Books

Students also viewed these Accounting questions

Question

What questions do you have for us?

Answered: 1 week ago

Question

What are the potential limitations of group discussion?

Answered: 1 week ago