use FORD for question #1 his savings HAT\'S ON THE WEB? e bond prices and yields
ID: 2787798 • Letter: U
Question
use FORD for question #1
his savings HAT'S ON THE WEB? e bond prices and yields for bonds issued by Georgia Pacific. You o a search. What is the shortest maturity bond issued by Georgia Pa e longest maturity bond? What is the credit rating for Georgia Pacif of u can find current bond prices at finra-markets.morningstar.com/Market can enter the isp. You want to find the bond prices and yield Pacific that is ic's bondh outstanding? What is the longest maturity bo all of the bonds have the same credit rating? Why do you think this is? 2. Yield Curves You can find information regarding the most current bond yields at money.cnn.com Fing cdrve for U.S. Treasury bonds. What is the general shape of the yield curve? What doos ut expected future inflation? Now graph the yield curve for AAA, AA, and A rated corporat oes th imply a bo nds. Is th e corporate yield curve the same shape as the Treasury yield curve? Why or why not? 3Default Premiums The Federal Reserve Bank of St. Louis has files listing historical interest rates on its website www.stlouisfed.org. Find the link for "FRED" data. You will find listings for Moody's Seasoned Aaa Corporate Bond Yield and Moody's Seasoned Baa Corporate Bond Yield. A default premium can be calculated as the difference between the Aaa bond yield and the Baa bond yield. Calculate the default premium using these two bond indexes for the most recent 36 months. Is the default premium the same for every month? Why do you think this is? nd Capital BudgetingExplanation / Answer
1. The shortest maturity bond issued by Ford (ticker “F”) is F4345352. The offer date is 03/07/2016 and the maturity date is 03/14/2018.
Longest maturity bond is F4433682. The offer date is 12/05/2016 and maturity date is 12/08/2046.
Credit rating for Ford’s bonds is shown in the table below:
Yes, all the bonds have the same credit rating. This is because the credit quality of each of these bonds are tied to Ford’s financials and Ford’s debt and interest servicing capability.
Moody's Baa2 S&P BBB Trace Investment GradeRelated Questions
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