Week 2 – Discussion 2
Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses.
Investing in Bonds
Pathbuilder is being used in this course and this discussion is currently locked. Prior to beginning work on this discussion you must complete the Zero Coupon Bonds, Bonds with Coupons, Bond Prices and Interest Rates, and Callable Bonds modules in the RealizeIt platform. Once the modules are completed and this information has been transferred into the course gradebook this discussion will unlock and you will be able to submit your initial post to the forum.
(Please note that some modules will have prerequisites that must be completed first. You are highly encouraged to start your RealizeIt work early in order to ensure that you have plenty of time to successfully complete all required modules prior to the due dates for your assigned work. If you do not complete any work in the RealizeIt platform, the grade returned from RealizeIt will be a Zero.)
Go to the FINRA Bonds Quick Search. Click the Corporate check box under Bond Type then click Show Results. Choose any bond.
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?
Guided Response: Review several of your classmates’ posts. Respond to at least two classmates by sharing your view of their conclusion. Are there any other factors that you can offer that may explain why the bond is selling at a premium or discount?
Carefully review the Discussion Forum Grading Rubric for the criteria that will be used to evaluate this Discussion Thread.
This section lists options that can be used to view responses.