COMPANY: NIKE INC.
Corporate bonds is one category of debt ssued by a company and sold to investors. The investors are basically lenders to the company – bonds are contractual debt. With bonds, the company gets capital to buy additional assets and in return the bond holder is paid interest payments at either a fixed or variable interest rate. When the bond expires, or “reaches maturity,” the payments cease and the original investment is returned. For your company, review the 10-K report and analyze their bond issuances.
Discussion questions for NIKE INC.
1. How much does your company have in bonds issued? What types of bonds do have they issued? When are some of the amounts due to reach maturity?
2. What is the rating of their most recent bonds?
3. If interest rates are rising, how does this impact the yield of the current bond holders