Investing in Bonds
Go to the FINRA Bonds Quick Search (Links to an external site.)Links to an external site..
• 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?
Are there any other factors that you can offer that may explain why the bond is selling at a premium or discount?