Corporate bonds

Corporate Bonds & Graphs in Excel P04 Data & Help Bond Data Getting data on corporate bonds is much more difficult than a stock Why? ◦ Not a lot of individual investors buying and selling bonds ◦ Therefore not a lot of demand for the information Most bond information is available only through tools (such as Bloomberg) that are not accessible to the average investor Bond Data: FINRA http://www.finra.org/about “FINRA is dedicated to investor protection and market integrity through effective and efficient regulation of broker-dealers.” “FINRA is not part of the government. We’re a not-for-profit organization authorized by Congress to protect America’s investors by making sure the broker-dealer industry operates fairly and honestly.” FINRA Data Does Not Usually Provide ◦ Volume of bonds ◦ Bid-ask spread ◦ Can made it difficult to know liquidity and true price of bond For Project Assume $1000 face value and semi-annual coupons ◦ 110.618 Price is the price quote (can use the current price on FINRA to check your answer for Part 1 Step 1) ◦ 110.618% of par = $1,000*1.10618 = $1,106.18 price Values may be slightly off (rounding, liquidity, timing of quote versus valuation, between coupon payments). Do not worry about this Ignore impact of callable Vs not on the bond’s price