I need help in as discussion post. My selected company is GIS mills. I need...
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Accounting
I need help in as discussion post.
My selected company is GIS mills.
I need answer to following questions:
If you are an investor who is looking for a corporate bond to invest to, are you going to buy a bond that you chose? To answer this question you should complete three steps:
1). Choose the bond that has the Last Price listed on the website. Copy the bond's information from the website.
2). Describe the main elements of the bond:
Coupon rate
Calculate annual coupon payment (assuming face value $1,000)
What is the frequency of coupon payments of the bond? If the frequency is greater than 1, how much is payment is going to be?
Maturity,
Rating. Explain the meaning of rating.
The last price listed on the website
How much the investor would pay for the bond assuming $1,000 face value and using the last price listed on the website?
Calculate the current yield of the bond assuming that par value of the bond is $1,000
How much is the bond's YTM listed on the website? Explain the meaning of YTM.
Is the bond callable or not? If the bond that you chose is callable (non-callable), will it change your decision to buy it?
3) Take a look at the balance sheet and income statement of the company. What data or ratios support your decision to buy this bond or not? You should develop a specific recommendation, with supporting rationale to explain your answer.
do asap
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