FInc paper
To grade your project your professor needs to see the information on the bonds you chose. Copy the bonds quotations into your project.
What were the last prices of the bonds (from the Last Sale column)? What does this price mean?
Assume the par value of the bond is $1,000.
How much will an investor pay for a bond purchased at the price listed in the Last Sale column?
Calculate the annual coupon interest payments.
Show your work in your project.
The YTM is listed in quotations of the bonds (in the Last Sale column, Yield). What does it mean? (No calculations are required for this section.)
How will changes in interest rates affect the bonds’ prices?
If you are going to buy a bond, which bond would you choose? Why?
What connections are there among economic trends analysis, bond market performance, and investment decisions? Discuss these connections.
Look at the balance sheet and income statement of the companies. What
data or ratios support your decision to buy this bond or not?
Using the +Comparison button above the graph, add DOW and NASDAQ to the graph to show the percentage change for each day relative to the first day (2 years ago) and the level of each index.
Write a report (minimum two pages, double-spaced) analyzing the results you received. At a minimum, respond to all of the following:
What type of indexes are the S&P 500, DJIA, and NASDAQ Composite?
What factors influence the performance of these indexes?
Is there a difference between the performances of S&P 500, DJIA, and NASDAQ Composite over these two years? If so, explain the factors that contribute to those differences.
Using the forecast of economic conditions and trends you found in Stage 1 of the project, what tendency of the levels and percentage changes of these indexes do you expect in the short term and in the long term?
Will these findings change your decision to buy the bond you chose in Stage 1 of this project, versus investing in stock market or in both? Explain your answer.