Assignment for Chapter Three: Ford Motor Credit Company<\/p>\n
As you realize corporations issue long-term debt in the form of bonds all the time. In Chapter Three we are told that there are different characteristics of these bonds that affect their yields. Given the following bond listing for Ford Motor Credit Company, list and explain the debt characteristics (Credit (default) risk, Liquidity, Tax Status, Term to maturity, Call feature, Conversion feature) as they relate to this bond and if they are adding or subtracting from the yield on this bond.<\/p>\n
There is in D2L a copy of Moody\u2019s recent report on the Ford Motor Credit Company\u2019s Bond that will help you with your answers.<\/p>\n
Ford Motor Credit Company<\/p>\n
OVERVIEW<\/p>\n
Price: $99.350 per $100 of par value<\/p>\n
Coupon (%): 4.903%<\/p>\n
Maturity Date: 20-Aug-2023<\/p>\n
Yield to Maturity (%): 4.395<\/p>\n
Current Yield (%): 4.278<\/p>\n
Moody\u2019s Ratings*: Baa2<\/p>\n
Coupon Payment Frequency: Semi-Annual<\/p>\n
First Coupon Date: 20-Feb-2019<\/p>\n
Type: Corporate<\/p>\n
Callable: No<\/p>\n
* https:\/\/research.ameritrade.com\/grid\/wwws\/common\/reports\/moodyreport.asp?YYY600_SDMuF4C9fhdMSyFm95jfK3MHDKn4rQdNQ7qgwxEiOaKp+TRWk2mcNgIbEGpA88hVRj1yQqvUbMLIXpNav8DLItWr\/hANUUDIgc+YYB6vPXQx47ORI2LYfA==&c_name=invest_VENDOR<\/p>\n","protected":false},"excerpt":{"rendered":"
Assignment for Chapter Three: Ford Motor Credit Company As you realize corporations issue long-term debt in the form of bonds all the time. In Chapter Three we are told that there are different characteristics of these bonds that affect their Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-427080","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/427080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=427080"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/427080\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=427080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=427080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=427080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}