Last Price Maturity Coupon Rate Analyst Rating Industry Pay Dates Bond #1 $1255.12 10/2029 3.75% AAA Pharmaceutical Apr & Oct Bond #2 $1001.10 05/2048 4.00% AAA Travel/Tourism May & Nov Bond #3 $801.00 01/2035 0% AA Zero Coupon Muni Jan & Jul Bond #4 $1391.66 08/2032 6.75% BBB Automobile Feb & Aug Bond #5 $701.01 01/2026 7.00% CCC Brick & Mortar Retail Jan & Jul

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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For the fourth discussion question of the quarter, we are going to examine a few bonds and determine which seems like the best investment for us.
Information about bond price (assume all have a face value of $1,000), maturity date, coupon rate, analyst ratings, and pay dates will be given. Based
on the description of the bonds provided, I would like for you to discuss which investment was the most appealing to you from the perspective of a
potential investor and why you felt that way.
As it is likely that there will many different companies chosen by different members of the class, please feel free to discuss and debate with your
colleagues about areas of agreement and disagreement with your selections for your required follow-up responses.
Bond #4
$1391.66
08/2032
6.75%
BBB
Last Price
Maturity
Coupon Rate
Analyst Rating
Industry
Pay Dates
Bond #1
$1255.12
10/2029
3.75%
AAA
Pharmaceutical
Apr & Oct
Bond #2
$1001.10
05/2048
4.00%
AAA
Travel/Tourism
May & Nov
Bond #3
$801.00
01/2035
0%
AA
Zero Coupon Muni
Jan & Jul
Automobile
Feb & Aug
Bond #5
$701.01
01/2026
7.00%
CCC
Brick & Mortar Retail
Jan & Jul
Transcribed Image Text:For the fourth discussion question of the quarter, we are going to examine a few bonds and determine which seems like the best investment for us. Information about bond price (assume all have a face value of $1,000), maturity date, coupon rate, analyst ratings, and pay dates will be given. Based on the description of the bonds provided, I would like for you to discuss which investment was the most appealing to you from the perspective of a potential investor and why you felt that way. As it is likely that there will many different companies chosen by different members of the class, please feel free to discuss and debate with your colleagues about areas of agreement and disagreement with your selections for your required follow-up responses. Bond #4 $1391.66 08/2032 6.75% BBB Last Price Maturity Coupon Rate Analyst Rating Industry Pay Dates Bond #1 $1255.12 10/2029 3.75% AAA Pharmaceutical Apr & Oct Bond #2 $1001.10 05/2048 4.00% AAA Travel/Tourism May & Nov Bond #3 $801.00 01/2035 0% AA Zero Coupon Muni Jan & Jul Automobile Feb & Aug Bond #5 $701.01 01/2026 7.00% CCC Brick & Mortar Retail Jan & Jul
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