Corporate Bonds

Archive for the ‘Corporate Bond Investing’ Category

Question: (Hopefully) Simple question on stocks?

i read a book on stock valuation and it said that “with long-term corporate interest rates were at approximately 6.5% in 2007, a company with $54 EPS were worth approximately $830/share”

all i want to know is what these “long-term corporate interest rates” are and where i would find what it currently is

this rate applies to either stocks or Corporate Bonds

if this question does not make sense, please let me know so that i can edit it. thanks

Answer: Typically, stocks are valued in relation to the “risk-free rate.” But this is always a government bond/note/bill — not a corporate bond.

Good luck!

Introduction to Bonds

The Bloomberg Edge: Corporate Bond Rout