bond issued by Moorhead, Minnesota.
Assignment for Chapter Seven
Below is the listing of a bond issued by Moorhead, Minnesota.
• Explain what it means to be a municipal bond.
• This is a general obligation bond. Explain the difference between a general obligation bond and a revenue bond.
• The Bond Rating for this bond is AAA. What does a bond rating of AAA by Fitch mean for the investor and for the City of Apple Valley?
• This bond has a call feature – Explain what it means to have a call feature.
Rating Issuer – CUSIP St Coupon Maturity Callable
AAA Fitch APPLE VALLEY MINN MN 2.350% 12/15/31 Yes
GENEAL OBLIGATION
REF BONDS
Call Prices Price Yield to Maturity Current Yield First Coupon Date
105.00 90.52 3.069% 2.596% 12/15/2013
NOTES – Non-Taxable – Bond, Municipal
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