In this assignment, you will make your initial purchase of bonds to build your portfolio. You will have a spending budget of $10,000 to be purchased in units of $1000 par value (include commission...

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In this assignment, you will make your initial purchase of bonds to build your portfolio. You will have a spending budget of $10,000 to be purchased in units of $1000 par value (include commission cost). Before you purchase and record your purchased bonds you will need to complete the following steps.


In your Building Your Bond Portfolio paper,



  • Develop a company profile sheet or fact sheet for each company you have selected.

  • Analyze your selected bond companies’ fundamentals, which should include a summary of the companies’ qualitative and quantitative data. This should also include supporting data justifying your companies’ selection. Additionally,

  • Create a tracking spreadsheet or table for your purchases.

  • Develop a holding return calculations table for your purchases.

  • Summarize companies’ peer-group analysis, year-end comparison, annual financial highlights, news events, and ratio analysis.

  • Discuss how this portion of your portfolio will help you meet your financial goals.

  • Compare, briefly, each of your selected bonds in terms of the provisions dealing with denomination, registration, callability, convertibility, sinking fund, security, additional debt, rights on default, and indenture modification. Indicate whether each of these characteristics will have a favorable or unfavorable influence on the price of the bond.


The Building Your Bond Portfolio paper,



  • Must be 3 double-spaced pages in length (not including title and references pages and formatted according to APA style as outlined in the Ashford Writing Center’sAPA Style(Links to an external site.)

  • Must include a separate title page with the following:

    • Title of paper

    • Student’s name

    • Course name and number

    • Instructor’s name

    • Date submitted




For further assistance with the formatting and the title page, refer toAPA Formatting for Word 2013(Links to an external site.).


Answered Same DayAug 20, 2021

Answer To: In this assignment, you will make your initial purchase of bonds to build your portfolio. You will...

Aarti J answered on Aug 23 2021
152 Votes
INTRODUCTION
In this paper, we would be analyzing the bond portfolio as well as the company analysis of Microsoft. For the portfolio, we are invest
ing in 4 different bonds of Microsoft which has high returns over the period of time. All these bonds have different yield as well time to maturity.
Bond Analysis:
Microsoft has a wide range of bonds which it has issued which has different maturity periods. Some of the bonds includes 2.4% Microsoft bond with the maturity date of 2026. The five bonds that has been considered for investment includes:
Bonds traded:
2.4% Microsoft corp bond which has the maturity by 2026 and is being traded in the open market. The last price data for the bond wasup by 102.665% and during the last trade, its done by 0.03%. This bond has recorded a normal trading price of 102.665% over the period.
The other trading bond is 3.45% Microsoft bond which has the expiration in 2036. The company was last traded at 11.050% and has an average trading price of this, which has shown a change of 0.217% over the period.
The third bond traedis 3.7% Microsoft bond which has the maturity of 2046 and has been trading at the last price of 11.270%. The varegae trading price of this bond has been 116.270% and has recorded the change of 0.112%.
The fourth bond that is being traded is Microsoft 3.95% bond which has the maturity in 2056 and has recorded change of 1.99% over the last time. The current price i.e. 119.951 is the highest trading price of the...
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