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.
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.
Please submit your assignment.
For assistance with your assignment, please use your text,
Web resources, and all course materials.
This is the website indicated above ZIONSDIRECT
https://www.auctions.zionsdirect.com/
We reviewed an example on this website. For this task, be
sure to note that only 2 of the 3 structures are available to the explore for
the individual project. Select an example of the following structured bonds on
the website (a total of 2 bonds need to be selected)
US AGENCIES / FDIC-INSURED CDS (none are currently available
for auction, you do not need to cover this structure)
CORPORATE BONDS
MUNICIPAL BONDS
