Refer to the online bond pricing handout (attached) for the following: 1. Locate FEDEX CORP bond FDX4200151. Assume a par value of $1,000. Assume that coupon payments are made semiannually. A. Estimate the bond's value. Assume an investor's required rate of return equal to 5% per year, compounded semiannually. B. Estimate the bond's expected return (yield-to-maturity) using the bond price listed on the pricing handout. Be sure to adjust your yield-to-maturity to annual terms. C. Based on your answers to BOTH parts A and B above, should we invest in the bond? Why or why not? 2. Locate WALMART INC bond WMT5472033. Assume a par value of $1,000. Assume that coupon payments are made semiannually. A. Estimate the bond's value. Assume an investor's required rate of return equal to 3.2% per year, compounded semiannually. B. Estimate the bond's expected return (yield-to-maturity) using the bond price listed on the pricing handout. Be sure to adjust your yield-to-maturity to annual terms. C. Based on your answers to BOTH parts A and B above, should we invest in the bond? Why or why not? 3. Locate TARGET CORP bond TGT3869508. Assume a par value of $1,000. Assume that coupon payments are made semiannually. A. Estimate the bond's value. Assume an investor's required rate of return equal to 3.5% per year, compounded semiannually. B. Estimate the bond's expected return (yield-to-maturity) using the bond price listed on the pricing handout. Be sure to adjust your yield-to-maturity to annual terms. C. Based on your answers to BOTH parts A and B above, should we invest in the bond? Why or why not? Refer to the online bond pricing handout (attached) for the following: 1. Locate FEDEX CORP bond FDX4200151. Assume a par value of $1,000. Assume that coupon payments are made semiannually. A. Estimate the bond's value. Assume an investor's required rate of return equal to 5% per year, compounded semiannually. B. Estimate the bond's expected return (yield-to-maturity) using the bond price listed on the pricing handout. Be sure to adjust your yield-to-maturity to annual terms. C. Based on your answers to BOTH parts A and B above, should we invest in the bond? Why or why not? 2. Locate WALMART INC bond WMT5472033. Assume a par value of $1,000. Assume that coupon payments are made semiannually. A. Estimate the bond's value. Assume an investor's required rate of return equal to 3.2% per year, compounded semiannually. B. Estimate the bond's expected return (yield-to-maturity) using the bond price listed on the pricing handout. Be sure to adjust your yield-to-maturity to annual terms. C. Based on your answers to BOTH parts A and B above, should we invest in the bond? Why or why not? 3. Locate TARGET CORP bond TGT3869508. Assume a par value of $1,000. Assume that coupon payments are made semiannually. A. Estimate the bond's value. Assume an investor's required rate of return equal to 3.5% per year, compounded semiannually. B. Estimate the bond's expected return (yield-to-maturity) using the bond price listed on the pricing handout. Be sure to adjust your yield-to-maturity to annual terms. C. Based on your answers to BOTH parts A and B above, should we invest in the bond? Why or why not
