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?What is the coupon interest rate on the bond when it was issued?
ISSUER NAME
PUBLIC SVC ELEC & GAS CO
SYMBOLE
PEG.GO
CALLABLE
Sub product type
Corporate Bond
Coupon
5.000
Maturity
07/01/2037
Rating moody
Aa3
Rating s&p
A
Last sale price
109.402
Last sale yield
4.299
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?What is the coupon interest rate on the bond when it was issued?
ISSUER NAME
PUBLIC SVC ELEC & GAS CO
SYMBOLE
PEG.GO
CALLABLE
Sub product type
Corporate Bond
Coupon
5.000
Maturity
07/01/2037
Rating moody
Aa3
Rating s&p
A
Last sale price
109.402
Last sale yield
4.299
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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?
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