Personal Finance 1st Edition by Jack R. Kapoor

Exercise 18

Using the Internet. Use the information at the bond site on Yahoo! Finance lo answer the following questions about a corporate bond. To complete this activity, follow these steps.

a. Go to http://finance.yahoo.com/bonds and click on Bond Screener.

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b. Click on Corporate and enter the information requested in the section “Select Bond Criteria.” Then click Find Bonds.

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c. Choose one of the issues listed.

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d. Using the information on the Yahoo! bond website, determine the current yield for this bond issue. What does the current yield calculation measure?

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e. Using the information on the Yahoo! bond website, what is the yield to maturity for this bond issue? What does the yield to maturity calculation measure?

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f. What is the rating for this bond? What does this rating mean?

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g. Based on your answer to the above questions, would you choose this bond for your investment portfolio? Explain your answer.