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Most of the information is self-explanatory. The first two columns give the bond ratings assigned by Moody's and Standard & Poor's. The Qty column lists the number of bonds for sale, and the Min column is the minimum number of bonds that can be purchased. Next we have the Issues. Clicking on one of these links provides more information concerning the bond. Notice in the Maturity column that the bond maturing on January 15, 2006, has a "C" following the date, indicating that this particular bond is callable. The yield column shows the yield to maturity based on the purchase price, which is listed in the last column. The LY column shows the yield investors will receive if they buy this bond at the listed purchase price and the company calls the bond on the next call date. When you search for bond quotes on the Web, remember that the bond market is not very liquid, so you may be unable to find bonds listed for a particular company on a particular day.

Ross et al.: Fundamentals I III. Valuation of Future I 7. Interest Rates and Bond I I © The McGraw-Hill of Corporate Finance, Sixth Cash Flows Valuation Companies, 2002

Edition, Alternate Edition

224 PART THREE Valuation of Future Cash Flows

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