As you realize corporations issue long-term debt in the form of bonds all the ti

Question

As you realize corporations issue long-term debt in the form of bonds all the time. In Chapter Three we are told that there are different characteristics of these bonds that affect their yields. Given the following bond listing for Coca Cola Enterprises, Inc., list and explain the debt characteristics (Credit (default) risk, Liquidity, Tax Status, Term to maturity, Call feature, Conversion feature) and if they are adding or subtracting from the yield on this bond.

COCA COLA ENTERPRISES INC

OVERVIEW

Price:

131.00

Coupon (%):

6.950

Maturity Date:

15-November-2026

Yield to Maturity (%):

3.713

Current Yield (%):

5.305

Fitch Ratings:

AA

Coupon Payment Frequency:

Semi-Annual

First Coupon Date:

15-May-1997

Type:

Corporate

Callable:

No

As much detail as possible please!!!!

COCA COLA ENTERPRISES INC

OVERVIEW

Price:

131.00

Coupon (%):

6.950

Maturity Date:

15-November-2026

Yield to Maturity (%):

3.713

Current Yield (%):

5.305

Fitch Ratings:

AA

Coupon Payment Frequency:

Semi-Annual

First Coupon Date:

15-May-1997

Type:

Corporate

Callable:

No

As much detail as possible please!!!!

Explanation / Answer

It is a non callbale bond meaning it is mayuring only in 15th nov 2026. The YTM is lesser than coupon meaning the bond is selling at lesser price than issued i.e discount bond.
The fitch rating"AA" menain it is investable category and it is having good credit rating and it is not having default risk.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.