Bonds and Stocks

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Understanding how to properly value a vanilla bond (a plain bond) is essential for finance. Using the following Web site, find 3 different funding structures. Describe for each structure: security type, term, and yield. Furthermore, take a look at each of their offering documents, and provide a short description of the information found in the documentation.

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  • Why do the different types of bonds get different rates? Explain your answer.
  • What makes each of the different structures different? Explain your answer.
  • What does the rate given say about the credit rating for each issuer? Explain your answer.
  • How does credit rating affect the rate given to the issuer? Explain your answer.
  • Which structure has the best credit rating based on the yield given to each structure? Explain your answer.
  • What is the credit rating supposed to tell you? Explain your answer.
  • Which bond is receiving the best price? Explain your answer.
  • Why does having a good credit rating matter to the issuer? Explain your answer.

800–1,000 words

No plagiarism please.

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