Describe the presence of a sinking fund. Does the bond you selected to fit into this category? Explain. If it does not, find one that does and describe how this impacts the bond.

Management

Valuing Stocks & Bonds

Assignment:

  1. Go to finance. Yahoo and search for bonds (you are free to choose the website of your choosing, Yahoo is not the only one to get a bond quote). Address the following about the bond that you select and bonds in general:
  2. Describe the different types of bonds.
  3. Describe the difference between stocks and bonds.
  4. Select a specific bond to focus on. Describe the bond and why you selected it.
  5. Explain the security of the bond, that is, whether the bond has collateral.
  6. Describe how the seniority of the bond is calculated.
  7. Describe the presence of a sinking fund. Does the bond you selected to fit into this category? Explain. If it does not, find one that does and describe how this impacts the bond.
  8. Review a bond with a call provision and explain the specified call dates and call prices.
  9. Review a bond with a deferred call accompanying the above call provision and explain what this means.
  10. What are positive covenants.? Discuss several possible positive covenants the bond company might consider.
  11. What are negative covenants? Also, discuss several possible negative covenants the bond company might consider.
  12. What is a conversion feature?
  13. A floating rate coupon?
  • M4 Assignment UMBO – 3, 4
  • M4 Assignment PLG – 1, 2, 4
  • M4 Assignment CLO – 4