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the balance sheet and income statement

the balance sheet and income statement

For bonds info: http://finra-markets.morningstar.com/BondCenter/Default.jsp. ( click on Search in the middle of the screen (under Market Center Bond Guide), under Quick Search type the Issuer Name and the Symbol, and click SHOW RESULTS.

Another useful website is https://markets.businessinsider.com/bonds. To find the information on bonds, scroll down the page, type the name of the company in the window under Bond Finder, and click SEARCH.

Copy the quotations of two bonds issued by SBUX that contain the Price.

*Assume that par value of the bond is $1,000. What were the last prices of the bonds in $$$ (listed in the Price column)? Show your work in your project.

1. Assume that par value of the bond is $1,000. Calculate the annual coupon interest payments. Show your work in your project.

2. Assume that par value of the bond is $1,000. Calculate the current yield of the bonds. Show your work in your project.

3. Write a 1-2 page of the analysis of the bonds. In your analysis you should answer the following questions. Please explain your answer to each question.

a) How much is the YTM listed in quotations is for the bonds? Explain the meaning of YTM. Year to maturity – How much would you make if you held it till 2048 –

b) If you are going to buy a bond issued by SBUX, which bond would you choose? Why? I would chose the 4,5 the higher YTM i want the biggest return

c) Are these bonds callable? If the bonds that you chose are callable (non-callable), will it change your decision to buy them? Yes, Can pull my money at any time. If i was going to Hold them till maturity it would matter but provide more flexibility if I needed the funds

d) If you are an investor who is looking for a bond to invest in, are you going to buy a bond that you chose? Yes I would buy it.

Take a look at the balance sheet and income statement of the company. What data or ratios support your decision to buy this bond or not? The current ratio of the information on the balance sheet You may want to incorporate the results of the Research Project Part 1, as well as the results of the financial leverage ratios to answer this question. You should develop a specific recommendation, with supporting rationale to explain your answer.

***** USE THE INFO ON THE CHART FOR THE TWO BONDS TO DO THIS ASSIGNMENT ***********

Issuer name

Symbol

Callable

Coupon

Maturity

Price

Yield

STARBUCKS CORP

SBUX4665314

Yes

4.500

11/15/2048

$122.53

3.257

STARBUCKS CORP

SBUX4830107

Yes

4.450

08/15/2049

122.064

3.253

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