Key Assignment Draft- 700-1000 words with APA references and original work
Understanding how to properly value a vanilla bond is essential for finance. Find two companies with debt and that pay dividends. You can use the following stock screener to find a company:
http://www.google.com/finance/stockscreener. Add the criteria of long-term debt to assets to ensure the company has debt. Add the criteria of dividend per share. Find both company’s financial pages at: http://www.sec.gov/edgar.shtml.
Look at the long-term debt on the balance sheet. Determine the coupon price, the length until maturity and the yield to maturity. Calculate today’s price of the bond.