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Useful website on bond information ishttps://markets.businessinsider.com/bonds. To find the information on bonds, scroll down the page, type the name of the company in the window
Useful website on bond information ishttps://markets.businessinsider.com/bonds. To find the information on bonds, scroll down the page, type the name of the company in the window under Bond Finder, and click SEARCH.
Copy the quotations of twobonds issued by Berkshire Hathaway that contain the Price. Present these quotations in a table.
- 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 the calculation.
- Assume that par value of the bond is $1,000. Calculate the annual coupon interest payments. Show the calculation
- Assume that par value of the bond is $1,000. Calculate the current yield of the bonds. Show the calculation.
- How much is the YTM listed in quotations of the bonds (in the Last Sale column - Yield) (no calculations are required for this question?
- Write a page of the analysis of the bonds.In your analysis you should answer the following questions.Please explain.
- If you are going to buy a bond issued by the company, which bond would you choose? Why?
- Are these bonds callable? If the bonds that you chose are callable (non-callable), will it change your decision to buy them?
- If you are an investor who is looking for a bond to invest in, are you going to buy a bond that you chose?Take a look at the balance sheet and income statement of the company. What data or ratios support your decision to buy this bond or not? You may want to incorporate the results of the Research Project Part 1, as well as the results of the financial leverage ratios to answer this question.You should develop a specific recommendation, with supporting rationale for the investor to explain your answer.
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