Question
Suppose you observe the following information at the FINRA website regarding bonds issued by Advanced Mciro Devices. ADVANCED MICRO DEVICES INC Coupon rate: 7% Maturity
Suppose you observe the following information at the FINRA website regarding bonds issued by Advanced Mciro Devices. ADVANCED MICRO DEVICES INC Coupon rate: 7% Maturity Date: 7/1/2024 Symbol: AMD4155878 CUSIP: 007903BCO Next Call Date: 7/1/2019 Callable: Yes Last Trade Price: $63.50 Last Tradable Yield: Last Trade Date: 8/25/2015 USE Treasury Yield: ___ Souce: http://www.finra.org/ Agency Credit Rating (Publication Date) Moody's Rating Caa2 (7/28/2015) Standard & Poor's Rating B- (4/20/2015) Fitch Rating B- (4/20/2015) a. What is the yield to maturity of this bond? b. What are the risk factors the yeild you determined in part a offers rewards based on teh information above? Explain c. On 8/17/2018, the price (last trade price) of this bond was $106.00. What kind of a change in factor(s) you identified in part b would lead to the price on 8/17/2018? Which factor may be the most significant? Explain.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started