PLEASE READ CAREFULLY
– Please use APA (7th edition) formatting
– All questions and each part of the question should be answered in detail (Go into depth)
– Response to questions must demonstrate understanding and application of concepts covered in class,
– Use in-text citations and at LEAST 2 resources per discussion from the school materials that I provided to support all answers. Include at least 2 references and include in-text citations.
– Responses MUST be organized (Should be logical and easy to follow)
Minimum 1.5 page
Go to TeachMeFinance.com
a. Kinds of Interest, Kind of Interest Rates
b. Bond Valuation , Bond Valuation – Present Value of a Bond, Par Value, Coupon Payments, Indenture, Maturity Date, Market Interest Rate
Discussion 1 – Bonds
In chapter 6, we have discussed how to value bonds. If all investors are using this method, why does the same bond buy or sell at different prices? In other words, why is there a market for bonds? Why do some financial analysts treat preferred stock as a special type of bond rather than as an equity security? Include in your discussion the relationship between bond prices and interest rates.