What type of bond is this? What is the face value for this bond? What is the interest rate for this bond? What is the dollar amount of annual interest for this bond? When are interest payments made to bondholders? Is the corporation currently paying interest as scheduled? What is the maturity date for this bond? What is Standard & Poor's rating for this bond? What is Morningstar's rating for this bond? What was the original issue date?

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
icon
Related questions
Question

I'm not too sure how to go about the questions listed in the images in addition to the information given in the images.

With the triplets now in high school, Jamie Lee and Ross have made good decisions so far concerning their financial and investment strategies. They budgeted throughout the years and are right on track to reaching their long-term investment goals of paying the triplets’ college tuition and accumulating enough to purchase a beach house to enjoy when Jamie Lee and Ross retire.

The pair are still researching where to best invest the $50,000 that Ross had recently inherited from his uncle’s estate. Ross and Jamie Lee would like to invest in several varieties of stocks, bonds, or other investment instruments to supplement their retirement income goals.

Jamie Lee and Ross have been researching stock investment opportunities that my offer lucrative returns, but they know there is plenty of risk involved. They are aware that they must develop a firm plan to assess the risk of the various investment types so they may have the proper balance between high, moderate, and low risk investment options. 

They decided that at this stage of their lives, it may be wise to speak to an investment counselor. They contact Mr. Jay Hall, who has been highly recommended by a trusted colleague and friend of Ross throughout the years. Mr. Hall assesses their risk for investment and recommends two different corporate bonds. One of those companies he suggested is The Coca-Cola Company. 

What is the corporation's name?
What are the corporation's address and telephone number?
What type of products or services does this firm provide?
Briefly describe the prospects for this company (include
significant factors like product development, plans for
expansion, plans for mergers, etc.)
Category 2: Dividend Income
What type of bond is this?
What is the face value for this bond?
What is the interest rate for this bond?
What is the dollar amount of annual interest for this bond?
When are interest payments made to bondholders?
Is the corporation currently paying interest as scheduled?
What is the maturity date for this bond?
What is Standard & Poor's rating for this bond?
What is Morningstar's rating for this bond?
What was the original issue date?
Is the bond callable?
Is the bond secured with collateral?
Category 3: Financial Performance
What are the firm's basic earnings per share for the last year?
Have the firm's earnings increased over the past five years?
Have sales increased over the last five years?
Coca-Cola Corporation
The Coca-Cola Company P.O. Box 1734 Atlanta, GA,
USA 1-800-GET-COKE
Sparkling and still beverages
Coca-Cola is the world's largest non-alcoholic
beverage company.
Neutral (credit watch positive)
Transcribed Image Text:What is the corporation's name? What are the corporation's address and telephone number? What type of products or services does this firm provide? Briefly describe the prospects for this company (include significant factors like product development, plans for expansion, plans for mergers, etc.) Category 2: Dividend Income What type of bond is this? What is the face value for this bond? What is the interest rate for this bond? What is the dollar amount of annual interest for this bond? When are interest payments made to bondholders? Is the corporation currently paying interest as scheduled? What is the maturity date for this bond? What is Standard & Poor's rating for this bond? What is Morningstar's rating for this bond? What was the original issue date? Is the bond callable? Is the bond secured with collateral? Category 3: Financial Performance What are the firm's basic earnings per share for the last year? Have the firm's earnings increased over the past five years? Have sales increased over the last five years? Coca-Cola Corporation The Coca-Cola Company P.O. Box 1734 Atlanta, GA, USA 1-800-GET-COKE Sparkling and still beverages Coca-Cola is the world's largest non-alcoholic beverage company. Neutral (credit watch positive)
Coca-Cola Co KO ★★★
|
Quote Chart Stock Analysis Performance
Price/Yield Change
-0.26%/ +1.51%
Last Price/Yield
$105.60/2.20
Trading Chart
- Coca Cola 2.875% | Maturity: 2025:
2.20
2.15
2.10
2.05
Volume
H.
Price Evaluated Price Yield Evaluated Yield US Treasury Index
Jul 18
Issue Details
Amount Outstanding
1.8 Bil
Coupon
2.875%
Day Count Basis
30/360
Payment Currency
US Dollar
Jul 28
Par Value
1,000
Coupon Type
Fixed
Key Ratios Financials Valuation Insiders Shareholders Transcripts Filings Bonds Options
Yield to Call
Yield to Worst
---
52-Wk High/Low Price
$106.93/$97.12
Collateral Type
Zoom: 1M 3M YTD 1Y
First Payment Date
2016-04-27
Jun
1Y 3Y SY 10Y Maximum
Aug 05
Current Yield
2.72
Issue Size
1.8 Bil
Coupon Frequency
Semi-Annually
Reset
Accrual Start Date
2015-10-27
Issue General Information
Issuer
Detail Type
Maturity Date
Country
Currency
Callable
Puttable
Convertible
Issue Features
Tax Status
Rule 144a
Current Yield Spread
Benchmark Treasury
Yield Spread
Treasury Yield
Latest Date
Coca-Cola Co
Corporate Bond
10/27/2025
United States
US Dollar
No
No
No
PDF Report
Modified Duration
8.0
Taxable
Not subject to Rule 144A
US Treasury 7-10 Yr Yld USD
0.69%
1.51 %
2016-08-17
Transcribed Image Text:Coca-Cola Co KO ★★★ | Quote Chart Stock Analysis Performance Price/Yield Change -0.26%/ +1.51% Last Price/Yield $105.60/2.20 Trading Chart - Coca Cola 2.875% | Maturity: 2025: 2.20 2.15 2.10 2.05 Volume H. Price Evaluated Price Yield Evaluated Yield US Treasury Index Jul 18 Issue Details Amount Outstanding 1.8 Bil Coupon 2.875% Day Count Basis 30/360 Payment Currency US Dollar Jul 28 Par Value 1,000 Coupon Type Fixed Key Ratios Financials Valuation Insiders Shareholders Transcripts Filings Bonds Options Yield to Call Yield to Worst --- 52-Wk High/Low Price $106.93/$97.12 Collateral Type Zoom: 1M 3M YTD 1Y First Payment Date 2016-04-27 Jun 1Y 3Y SY 10Y Maximum Aug 05 Current Yield 2.72 Issue Size 1.8 Bil Coupon Frequency Semi-Annually Reset Accrual Start Date 2015-10-27 Issue General Information Issuer Detail Type Maturity Date Country Currency Callable Puttable Convertible Issue Features Tax Status Rule 144a Current Yield Spread Benchmark Treasury Yield Spread Treasury Yield Latest Date Coca-Cola Co Corporate Bond 10/27/2025 United States US Dollar No No No PDF Report Modified Duration 8.0 Taxable Not subject to Rule 144A US Treasury 7-10 Yr Yld USD 0.69% 1.51 % 2016-08-17
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Types Of Securities Firms
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education