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How would you read this bond? What part is the interest rate & what part is the amount of bonds?

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  • How would you read this bond? What part is the interest rate & what part is the amount of bonds?


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Answer #1 | 19/12 2013 21:33
(a) The Macy bond is selling at a premium of 9% over its face value, which is quoted as 100 in financial papers, even though most bonds are issued in multiples of $1,000. (b) The part of the Walmart bonds of your query is messed up. You cannot buy a high quality bond at 11.75, it needs to be closer to 100. However for exercise purposes it may have a coupon rate of 11.75%. On the 15 bonds purchased at 88.25 you failed to list the coupon or interest rate.

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