Question Details

DQ 1 (Please show all work)
Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer.  What other factors may influence the value of a bond? 
 


I selected American Express CO bond
 
AMERICAN EXPRESS CO	As of 26-Sep-2015
 	 
 
OVERVIEW
 
 
 
Price:	117.56
Coupon (%):	7.000
Maturity Date:	19-Mar-2018
Yield to Maturity (%):	1.511
Current Yield (%):	5.955
Fitch Ratings:	A
Coupon Payment Frequency:	Semi-Annual
First Coupon Date:	19-Sep-2008
Type:	Corporate
Callable:	No

 
 
 
OFFERING INFORMATION
 
 
 
 
Quantity Available:	100
Minimum Trade Qty:	25
Dated Date:	19-Mar-2008
Settlement Date:	4-Dec-2014

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