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Bond Case Your client comes to you with th...

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Bond Case Your client comes to you with the following bond portfolio and wants to know which bonds that he / she should sell to buy into a high quality dividend strategy that is currently producing a 3% yield. Note that the yield to maturity of the bond that you would sell has to be lower than the strategy that you are moving into. Please issue a memo to the client outlying your considerations and your recommendation. Description Coupon Par Value Current Price Maturity Ohio State School District (Denton) 5.00% $100,000 $109.998 8/15/2021 Ohio State School District (General) 5.00% $70,000 $109.047 3/15/2016 Energy North Washington Electric 5.50% $80,000 $108.398 7/01/2016 Florida State Turnpike Authority 5.00% $80,000 $107.978 7/01/2016 IPS Multi-School Building 5.25% $125,000 $107.878 7/15/2025 Ohio Muni Electric Generation 5.00% $75,000 $103.999 2/15/2023 Orlando-Orange Expressway 5.00% $100,000 $107.476 7/01/2015 South Carolina Transportation 5.25% $90,000 $109.766 10/1/2017 Virginia Building Education 5.00% $100,000 $100.204 7/01/2014 Virginia Transportation 5.00% $75,000 $110.611 5/15/2016

 

Paper#6965 | Written in 18-Jul-2015

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