Please select ONE from the following for the paper, your choosing.
JP Morgan, Procter & Gamble, Exxon Mobil, Microsoft Corp., or Coca-Cola Company.
Go to the FINRA – Investor Information – Market Data websiteLinks to an external site. to search for bonds issued by any one of your selected companies* in Portfolio Project Part 1. (Choose search and enter the ticker symbol, select BOND to find all outstanding bonds issued by the selected company, and then click on “Go”.)
*In the event that none of the companies in your portfolio has any outstanding bonds, please notify your professor for an alternative assignment.
Write an analysis in a 2- to 3-page paper including the following:
What types of debt securities has your company issued?
What are the current ratings and yields to maturity for the company’s debt securities?
What factors do you think explain the yield levels?
Assume a holding period of 3 to 5 years of the bond. Discuss the impact of adding the bonds to your portfolio.
The object of this assignment is to examine the features of bonds issued by companies in your portfolio and assess the merits of the inclusion of bonds in your portfolio.
Please consider the following definition and discussion of holding-period return:
The yield to maturity is the average yield over the term of the bond. If a bond is sold before maturity, then its actual yield will probably be different from the yield to maturity. If interest rates rise during the holding period, then the bond’s sale price will be less than the purchase price, decreasing the yield, and if interest rates decrease, then the bond’s sale price will be greater. The holding-period return is the actual yield earned during the holding period. It can be calculated using the same formula for yield to maturity, but the sale price would be substituted for the par value, and the term would equal the actual holding period. Note that, unlike yield to maturity, the holding-period return cannot be known ahead of time because the sale price of the bond cannot be known before the sale, although it could be estimated
Please select ONE from the following for the paper, your choosing. JP Morgan, Pr
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