HI I am needing assistance in getting the below information. Any help would be a
ID: 2738802 • Letter: H
Question
HI I am needing assistance in getting the below information. Any help would be appreciated.
Thanks
Bloomberg Bonds
Source: Bloomberg Financial
2nd column: coupon rate, coupon payment=coupon rate *par amount
Column 3: yield to maturity; interest rate that depends on 6 factors you know
Column 4: Par value of bond
Column 5: full price or PV of bond
Column 6: S & P rating; issuing company credit score; AAA the highest, AA, A, BBB (all of them investment grade), BB B, CCC, CC, C all speculative very risky bonds with very high yield and low price.
Issuer
Coupon
%
Maturity
YTM
%
Par Amount
(million)
Full Price
(000)
S&P
Credit Rate
Treasury
6.5
2/15/10
4.55
67
76,387
Treasury
5.625
5/15/08
4.64
92
98,762
Treasury
5
8/15/11
4.57
84
87,192
Treasury Sector
262,341
Time Warner Enterprise
8.18
8/15/07
5.47
82
93,710
BBB+
Texas Utilities
6.375
1/1/08
6.19
30
30,678
BBB
Rockwell International
6.15
1/15/08
6.04
52
52,837
A
Transamerica Corporation
9.375
3/1/08
6.34
15
17,445
AA-
Coastal Corporation
6.5
6/1/08
6.76
30
30,153
BBB
United Airlines
6.831
9/1/08
5.99
38
39,949
A-
Burlington Northern Santa Fe
7.34
9/24/08
5.67
3
3,390
A+
News America Holding
7.375
10/17/08
6.56
30
32,292
BBB-
Litton Industries
8
10/15/09
6.70
60
66,834
BBB-
America Standard Inc.
7.625
2/15/10
7.59
41
41,332
BB+
Caterpillar Inc.
9.375
8/15/11
6.01
60
A+
Corporate Sector
436,248
Portfolio
698,589
Source: Bloomberg Financial
2nd column: coupon rate, coupon payment=coupon rate *par amount
Column 3: yield to maturity; interest rate that depends on 6 factors you know
Column 4: Par value of bond
Column 5: full price or PV of bond
Column 6: S & P rating; issuing company credit score; AAA the highest, AA, A, BBB (all of them investment grade), BB B, CCC, CC, C all speculative very risky bonds with very high yield and low price.
Explanation / Answer
The given table shows the bond issued by the BLOOMBERG.
2nd column - Coupan Rate: coupon rate is simply just the annual coupon payments paid by the issuer relative to the bond's face or par value.
3rd Column - Maturity: Maturity refers to a limited time period at the end of which the financial instrument will mature or we can say cease to exist and the principal is repaid with interest.
4th Column - Yield to Maturity (YTM): Yield to maturity is the discount rate at which the sum of all future cash flows from the bond (coupons and principal) is equal to the price of the bond.
Formula = YTM = {Coupan rate + (Par Value - Price) / Years to Maturity} / (Par Value - Price) / 2
5th column - Par Value: It is the face value of bond.
6th Column - Full Price or PV of Bond: It is the current price of bond at which the bond is currently available. Hence it is also called as PV of bond. It is amount which you have to pay today to purchase the bond.
7th Column: S & P Credit Rating: It stands for standard and poor credit rating. In the given table best bond as per the credit rating agency is Burlington Northern Santa Fe and Caterpillar Inc.
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