Bond Valuation Assignment | Homework Help Websites

Chapter Five: Bond Valuation

Using United Continental Holdings, Inc. my chosen publicly traded company and estimate approximately the required rate of return for the bond (15 or 20-year bond) of that company. 
Please note that required rate of return is the same as the yield to maturity of the bond. This question is very simple. 
You need to find the bond rating of your company and then find the yield corresponding to that rating at today’s date. 

Step 1: you need to find out the rating of the bond of your company. You can find rating from Morningstar.com or Moody’s, Standard and Poor or

http://www.fitchibca.com/  (Fitch, in the search type your company and get the rating)

Note: for BB or lower bond rating you need to Google to get the bond’s rating.

For example, for BB I Goggled and got this: https://research.stlouisfed.org/fred2/series/BAMLH0A1HYBBEY/

Therefore on the day of my search, from above I can say the approximate yield for BB rating is 5.64 %.

Below are also helpful for finding corporate rates:

https://www.quandl.com/data/ML/BBY-US-High-Yield-BB-Corporate-Bond-Index-Yield