1. What is the SYMBOL for Starbucks?
2. What is the current selling price of that bondIN DOLLARS (remember the bond price listed in the results is a percentage of the face value, see your bond reading material)? Is it more or less than the face value?
3. What is the semi-annual interest payment in dollars?
4. Look at the bond maturity, how much will you earn in total interest if the bond is held until maturity, and what is the value of those payments in present value dollars?
5. Calculate the current yield on this bond. This sight provides all the data you need - current selling price, par value of $1000, and coupon rate.
6. If you are an investor who is looking for a bond to invest to, are you going to buy a bond that you chose? Why? What factors affected your decision?Use the information you've learned about valuing bonds this week to answer this question.