Amazon Stock and Bond Analysis

Description

***NOTE**** I only need the two paragraphs. Just differentiate between the stocks information and bonds information with headers. I do not need an introduction, conclusion, or anything like that. Thank you! Collect and evaluate the data about bond performance of the assigned company. The information on bonds can be found on the website http://finra-markets.morningstar.com/BondCenter/Default.jsp. To find the information on bonds, click on Search in the middle of the screen (under Market Center Bond Guide), under Quick Search type the Issuer Name and the Symbol, and click SHOW RESULTS. Another useful website on bond information is https://markets.businessinsider.com/bonds. To find the information on bonds, scroll down the page, type the name of the company in the window under Bond Finder, and click SEARCH. Copy the quotations of two bonds issued by Amazon that contain the Price. Present these quotations in your project. 1. Assume that par value of the bond is $1,000. What were the last prices of the bonds in $$$ (listed in the Price column)? Show your work in your project. 2. Assume that par value of the bond is $1,000. Calculate the annual coupon interest payments. Show your work in your project. 3. Assume that par value of the bond is $1,000. Calculate the current yield of the bonds.Show your work in your project. 4. Write a 1-2 page of the analysis of the bonds. In your analysis you should answer the following questions. Please explain your answer to each question. a) How much is the YTM listed in quotations is for the bonds? Explain the meaning of YTM. b) If you are going to buy a bond issued by THE COMPANY, which bond would you choose? Why? c) Are these bonds callable? If the bonds that you chose are callable (non-callable), will it change your decision to buy them? d) If you are an investor who is looking for a bond to invest in, are you going to buy a bond that you chose? Take a look at the balance sheet and income statement of the company. What data or ratios support your decision to buy this bond or not? You may want to incorporate the results of the Research Project Part 1, as well as the results of the financial leverage ratios to answer this question. You should develop a specific recommendation, with supporting rationale to explain your answer 4- Collect and evaluate the data about stock performance of Amazon for the last one year. 1) Find the market ratios for the company for the last 1-3 years and its major competitor for the last year in the Internet. Price/Earnings ratio Market/Book ratio (also called (Price/Book ratio) Earnings per share Dividends per share Other market ratios on your choice These ratios are available on www.morningstar.com> Company’s page – under Valuation, Financials, and under Dividends You can find these ratios in the Internet or calculate them. If you use published ratios you must indicate that and cite their source. a. Present the market ratios as the table(s) in your project. b. Write about 1 page of analysis of the market ratio results that you found. Compare the market ratio results against the industry or main competitor. In your report please answer the question: Are the common stockholders receiving an adequate return on their investment? c. Compare the P/E ratio of your company with the industry average or 5-year average. Is the stock overvalued, undervalued, or properly valued? Why? In accordance with your findings, is it reasonable to buy the stock? Please explain your answers. -2) Analysis of the historical stock prices trend for the last year. a. Collect and evaluate the data about stock prices of the assigned company for the last one year for the company and its major competitor. b. Create the chart(s) using the stock price chart tools on the websites or Excel. Present the chart(s) in your project. c. Write about 0.5 page of analysis the historic stock prices trend for the last year