Week 2 Discussion 1 – Principles of Finance

Go to the Yahoo Finance Bonds Center. Under: Bonds Center click Bond Screener: Click the Corporate check box under Bond Type then click Find Bonds. Choose any bond. Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer. What other factors may influence the value of a bond?