Supply and Demand
1. 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 your work in your project.
2. Assume that par value of the bond is $1,000. Calculate the annual coupon interest payments. Show your work in your project.
3. Assume that par value of the bond is $1,000. Calculate the current yield of the bonds. Show your work in your project.
4. How much is the YTM listed in quotations of the bonds (in the Last Sale column - Yield) (no calculations are required for this question?
5. Write a 1-2 page of the analysis of the bonds. In your analysis you should answer the following questions. Please explain your answer to each question.
a) If you are going to buy a bond issued by THE COMPANY, which bond would you choose? Why?