Refer to the bond listing table below to determine the closing bond price for BAC.IOP?Click the icon to view the bond listing from the table below.The closing bond price for BAC.IOP is $(Type an integer or a decimal.)ww Listing from Wall Street Journal OnlineBond Listing from Wall Street Journal OnlineIssuer NameCITIGROUPGENERALELECTRIC CAPITAL2SymbolC.HRYGE.HMXKRAFT FOODSKFT.GXBANK OF AMERICA BAC.ICBANHEUSER-BUD.IDBUSCHPLCAT&T3T.KMCoupon Maturity8.500% May 20195.500%Jan 2020Feb 2020Jun 20195.375% Jan 2020COMCAST CORPCMCD.GC 5.150%GOLDMAN SACHS GS.IAR 5.375%GPBANK OF AMERICA BAC.IOPBARCLAYS BANKBCS.GYR5.375%7.625%4.500%5.000%5.800%Mar 2020Mar 2020Apr 2019Sept 2020Feb 2019RatingMoody's/S&P/FitchA3/A/A+Aa2/AA+/--Baa2/BBB-/BBB-A2/A/A+Baa2/BBB+/-HBaa1/BBB+/BBB+A1/A/A+A2/A/A+Aa3/AA-/AA-A2/A/A9Low LastHigh119.268 116.615 117.733 0.448105.307 102.374 103.097 -0.028Change Yield %5.9405.090106.081 101.999 103.411 0.687113.172 111.839 112.847 0.283104.693 104,061 104.526 -0.466104.832 100.923 101.225 0.44196.64299.750 95.636-0.592101.750 99.288 100.231 0.518107.104 102.680 103.584 0.595109.969 106.736 109.931 2.440104.9305.7864.784N/A5.8264.4454.3514.423X

Bond: A bond is a debt instrument issued by the firm for raising debt capital from…

Refer to the bond listing table below to determine the closing bond price for BAC.IOP? Click the icon to view the bond listing from the table below. The closing bond price for BAC.IOP is $ (Type an integer or a decimal.)

Refer to the bond listing table below to determine the closing bond price for BAC.IOP? Click the icon to view the bond listing from the table below. The closing bond price for BAC.IOP is $ (Type an integer or a decimal.)

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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Question

Refer to the bond listing table below to determine the closing bond price for BAC.IOP?
Click the icon to view the bond listing from the table below.
The closing bond price for BAC.IOP is $
(Type an integer or a decimal.)
ww

Listing from Wall Street Journal Online
Bond Listing from Wall Street Journal Online
Issuer Name
CITIGROUP
GENERAL
ELECTRIC CAPITAL
2
Symbol
C.HRY
GE.HMX
KRAFT FOODS
KFT.GX
BANK OF AMERICA BAC.ICB
ANHEUSER-
BUD.ID
BUSCH
PLC
AT&T
3
T.KM
Coupon Maturity
8.500% May 2019
5.500%
Jan 2020
Feb 2020
Jun 2019
5.375% Jan 2020
COMCAST CORP
CMCD.GC 5.150%
GOLDMAN SACHS GS.IAR 5.375%
GP
BANK OF AMERICA BAC.IOP
BARCLAYS BANK
BCS.GYR
5.375%
7.625%
4.500%
5.000%
5.800%
Mar 2020
Mar 2020
Apr 2019
Sept 2020
Feb 2019
Rating
Moody's/S&P/
Fitch
A3/A/A+
Aa2/AA+/--
Baa2/BBB-/BBB-
A2/A/A+
Baa2/BBB+/-H
Baa1/BBB+/BBB+
A1/A/A+
A2/A/A+
Aa3/AA-/AA-
A2/A/A
9
Low Last
High
119.268 116.615 117.733 0.448
105.307 102.374 103.097 -0.028
Change Yield %
5.940
5.090
106.081 101.999 103.411 0.687
113.172 111.839 112.847 0.283
104.693 104,061 104.526 -0.466
104.832 100.923 101.225 0.441
96.642
99.750 95.636
-0.592
101.750 99.288 100.231 0.518
107.104 102.680 103.584 0.595
109.969 106.736 109.931 2.440
10
4.930
5.786
4.784
N/A
5.826
4.445
4.351
4.423
X

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Which of the following is true about a bondholder? At the beginning of the life of the bond, the firm will pay a price for a bond and will then receive coupon payments throughout the life of the bond and receive the return of the principal amount at maturity At the beginning of the life of the bond, the firm will receive a price for a bond and will then pay coupon payments throughout the life of the bond and pay the return the principal amount at maturity At the beginning of the life of the bond, the bondholder will pay a price for a bond and will then receive coupon payments throughout the life of the bond and receive the return of the principal amount at maturity At the beginning of the life of the bond, the bondholder will receive a price for a bond and will then pay coupon payments throughout the life of the bond and pay the return the principal amount at maturity
All of the following refer to the face rate of interest on a bond except: a. stated rate b. effective rate c. nominal rate d. coupon rate
For a standard corporate bond, when are the following characteristics of the bond determined? ······ The amount that the issuer returns to the bondholder, when the bond matures. The maturity date. The bond's market yield. The bond's market price. The price that the bondholder pays to the issuer to acquire the bond. The amounts of any interest payments. The bond's coupon rate. The dates of any interest payments. 1. 2. Fixed before the bonds are sold and does not change. Fixed when the bonds are sold and does not change. 3. Fluctuates continually.
For a standard U.S. Treasury bond, when are the following characteristics of the bond determined? The amounts of any interest payments. The dates of any interest payments. The bond's market yield. The bond's market price. The amount that the Treasury returns to the bondholder, when the bond matures. The price that the bondholder pays to the Treasury to acquire the bond. The maturity date. 1. 2. Fixed before the bonds are sold and does not change. Fixed when the bonds are sold and does not change. 3. Fluctuates continually.
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Excel Activity: Bond Valuation Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds: • Bond A has a 10% annual coupon, matures in 12 years, and has a $1,000 face value. • Bond B has an 8% annual coupon, matures in 12 years, and has a $1,000 face value. • Bond C has a 12% annual coupon, matures in 12 years, and has a $1,000 face value. Each bond has a yield to maturity of 10%.
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