Finance

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Authors Note:

FINANCE
1
Table of Contents
Providing a description of the bond, the bond’s current yield, and the bond’s yield to
maturity, and the bond’s credit rating:.......................................................................................2
Indicating whether the bond is an investment-grade bond:.......................................................2
Indicating whether the bond will experience much interest rate risk:.......................................2
Indicating the key roles of federal, state, and local governments issue securities in the
financial market:.........................................................................................................................2
Indicating how these decisions affect an investor:.....................................................................4
References:.................................................................................................................................5

FINANCE
2
Providing a description of the bond, the bond’s current yield, and the bond’s yield to
maturity, and the bond’s credit rating:
Particular Values
Description of the bond 2004 PLAINFIELD IND CMNTY HIGH SCH BLDG CORP
Bond’s current price $99.67
Bond’s current yield 2.375%
Bond’s yield to maturity 2.50%
Bond’s credit rating AA+
Indicating whether the bond is an investment-grade bond:
The bond is considered as an investment grade, due to its rating and overall security
that is being provided by the municipal bond. The high rating and the overall yield rate
directly indicate the possibly income that will be generated till 2027 (Finra-
markets.morningstar.com, 2018). However, the investment can be conducted for securing the
investment, as it will not generate high return from investment.
Indicating whether the bond will experience much interest rate risk:
The interest rate risk is relevantly lower for municipal bonds, which does not increase
the risk of bonds. In addition, the overall pricing of the above bonds has mainly hovered from
$98.83 to $99.78. This relevantly indicates that the interest rate risk will not adequately affect
the process of the bond and negatively impact investor’s exposure in the bond market.