Online Research Assignment
Go to a website that gives you data for individual bonds. I recommend the Bond Center at Yahoo but you can use whatever site you like.
1. Find the bond issued by Apple that matures in the year 2023.
a. Find its price, coupon rate, maturity date, and YTM?
b. How is it rated?
c. How often are interest payments made?
d. Is it callable?

2. Find the US T bills and T bonds rates for the following maturity. Plot your results.
a. 3 months
b. 6 months
c. 2 years
d. 3 years
e. 5 years
f. 10 years
g. 30 years

Discussion:
Based on your Online Research Assignment, answer one of the following questions:
1. If you did not use data from the Bond Center at Yahoo, what did you use? Why?
2. For question 2, why is the curve expected to be concave? Explain your reasoning.

Written Assignment
1. Determine the value of a $1,000 CPC perpetual bond with a 4% coupon rate when the required rate of return is 4%? What is its value if the required rate were 5%?

2. BCC issued 8 ½% bonds a few years ago, and it has 20 years remaining to maturity. Assume annual coupon payments and a par value of $1,000. If an investor pays $1,025 for the bond, what is its YTM? Why would the investor pay more than par value?

3. ABC issued 7 3/8% bonds with annual interest payments that matures in 2042, but is callable at $1,037.08 in 2017, seven years from today. What is its yield to call if an investor bought a $1,000 bond for $900? (Hint: the yield to call is computed by replacing the maturity value M by the call price and the number of years until maturity n by the number of years until the call.)

Online Research Assignment Go to a website that gives you data for...