DQ 1 (Please show all work)

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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? 

 


I selected American Express CO bond

 

AMERICAN EXPRESS CO

As of 26-Sep-2015

  

 

OVERVIEW

 

 

 

Price:

117.56

Coupon (%):

7.000

Maturity Date:

19-Mar-2018

Yield to Maturity (%):

1.511

Current Yield (%):

5.955

Fitch Ratings:

A

Coupon Payment Frequency:

Semi-Annual

First Coupon Date:

19-Sep-2008

Type:

Corporate

Callable:

No

 

 

 

OFFERING INFORMATION

 

 

 

 

Quantity Available:

100

Minimum Trade Qty:

25

Dated Date:

19-Mar-2008

Settlement Date:

4-Dec-2014

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