What are the calculations involved with pricing a bond


Discussion:

• What are the calculations involved with pricing a bond and a stock?

• Choose a stock that is publicly traded and explain how you think the future potential of the stock warrants the price it sells at today - please explain and support with terms and concepts from this class material?

• Calculate the current return on a stock of your choice and compare it to returns on bonds. Which is better to invest in presently a stock or a bond in this company and why?

Please use in text citations.

Reference: Ross, S.A., Westerfield, R., & Jordan, B. D. (2011). Fundamentals of Corporate Finance (Tenth edition). New York, NY. McGraw-Hill/Irwin

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Corporate Finance: What are the calculations involved with pricing a bond
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