BOND PRICING

Dona Norman

FINC390-1302A-06

Professor Criniti

May 6, 2013

Introduction

In the present paper, the discussion shall be regarding pricing of bonds of particular organizations. The organization which has bonds and provides dividends to the shareholders is taken into account in present situation. The points into account shall include the value of the bond or credit rating of the other organizations. The organization which shall be useful for the banks according to the credit rating shall also be taken into account.

Selected Organization

Two organizations are selected for the present situation. The organizations include Morgan Stanley and Citi Group Inc. in their respective fields, both the organizations have done commendable job. These organizations provide bonds to their investors and interest is also provided by these organizations on the bonds issued by them. The organization Morgan Stanley has long term debts in its balance sheet (CITI Group Inc. n.d.)). The value of bond of Morgan Stanley is $1000.82 and that of Citi Group Inc. is $102.08. In relationship to Morgan Stanley length till maturity is 2.14 years and for Citi Group, the bonds are perpetual bonds.

The yield to maturity for Morgan Stanley is 4.164 and that of Citi Group is $3.78. The price of bond