Question Description
Prior to beginning work on this assignment, read Chapters 10 and 11, and review the PowerPoint slides for these chapters. 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 university Writing Center’s APA Style