What is a bond? Bonds are a form of debt. Bonds are loans, or IOUs, but you serve as the bank. You loan your money to a company, a city, the government and they promise to pay you back in full, with regular interest payments. A city may sell bonds to raise money to build a bridge, while the federal government issues bonds to finance its spiraling debts. The value of a bond is equal to the present value of its expected future cash flows. The valuation process involves estimating the expected future cash flows then determining the appropriate interest rate or interest rates that should be used to discount the cash flows, lastly you would need to calculate the present value of the expected cash flows. A bond’s value tends to fluctuate on daily and yearly bases due to prices either increasing or decreasing in value. As rates increase or decrease, the discount rate that is used also changes. (This was last updated may 24,2015) Maturity | Change in Bond Price If Interest Rates Rise To: | | 7.5% | 8.0% | 9.0% | 2 Years | -0.9% | -1.1% | -3.6% | 5 Years | -2.1% | -3.5% | -4.7% | 10 Years | -3.5% | -6.8% | -13.0% | 30 Years | -5.9% | -11.3% | -20.6% |

Maturity | Change in Bond Price If Interest Rates Fall To: | | 6.5% | 6.0% | 5.0% | 2 Years | +0.9% | +1.9% | +3.8% | 5 Years | +2.1% | +4.3% | +8.7% | 10 Years | +3.6% | +7.4% | +15.6% | 30 Years | +6.6% | +13.8% | +30.9% |

Verizon Communications Inc. sold $49 billion of bonds in eight parts in the biggest company debt offering ever. The second-biggest U.S. telephone carrier issued “fixed-rate” debt with maturities ranging from three to 30 years as well as two portions of floating-rate securities, according to data gathered by Bloomberg.com The deal, which is about the size of all outstanding obligations of the Slovak Republic, is helping to fund New York-based Verizon’s buyout of partner Vodafone Group Plc.’s 45 percent stake in the largest and most profitable U.S. wireless carrier, Verizon Wireless. The sale is more than double the previous issuance record of $17 billion from Apple Inc. sold in April of 2013. Data shows that the company also issued $11 billion of 5.15 percent, 10-year debt at a 225 basis-point spread; $6 billion of 6.4 percent, 20-year notes paying 250 basis points; and $15 billion of 6.55 percent, 30-year bonds at 265. This was the biggest corporate bond ever issued, traded as high as 107.6 cents on the dollar as of 1:12 p.m. in New York from an issue price of 99.883 cents, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The sale was managed by Barclays Plc, Bank of America Corp., JPMorgan Chase & Co. and Morgan Stanley. (This was the last update as of September 11, 2013)

Apple Inc. sold the largest corporate-bond deal in history a $17 billion offered to investors. A company called Goldman Sachs Group Inc. and Deutsche Bank AG sold the debt for Apple to investors in all corners of the credit markets from buyer’s overseas, municipal-bond investors, to portfolio managers who typically prefer “ultra-safe” government debt. Pension funds, insurance companies and hedge funds also joined in the deal this was Apple's first bond offer in almost 20 years. There was $52 billion worth of orders for the deal, making it one of the most highly desired bond deals Wall Street has ever seen. They then borrowed $5.5 billion for 10 years at an annual yield of 2.415%. It also issued three-year debt at 0.511%, five-year debt at 1.076% and 30-year debt at 3.883%.Apple said earlier this month it would borrow cash as part of a plan to return $100 billion to shareholders by the end of 2015. (This was the last update as of April 30, 2013)

Fiat Chrysler, GM Financial Issue Largest Bonds in April 2015. Fiat Chrysler Automobiles is a designer, manufacturer, and seller of automobiles and components. They issued a bond priced a $3 billion debt offering that will provide the car maker with funds likely to be used to refinance debt. A $1.5 billion five-year bond will pay a coupon of 4.5% while an equal amount of an eight-year bond will pay 5.25%. Fiat said the funds will be used for general corporate purposes including possibly refinancing debt held by FCA US, formerly known as Chrysler Group LLC. FCA US has an outstanding $3 billion bond that can be repaid with a penalty as of June 15 that has a coupon of 8%. It issued B2/BB- rated junk bonds worth $3 billion in the following two tranches:
$1.5 billion in 4.500% senior notes due on April 15, 2020 – The notes were issued at 100.00 at a yield to worst of 4.500%.
$1.5 billion in 5.250% senior notes due on April 15, 2023 – The notes were issued at 100.00 at a yield to worst of 5.250%.
Fiat Chrysler Automobiles will use the proceeds from the sale for general corporate purposes, which may be including refinancing debt of its unit. (This was the last update as of April 30, 2013)

Chevron Corp., the second-largest U.S. oil company, issued $6 billion of bonds in four parts for its first sale of 2013. The company canceled plans to offer floating-rate notes due in 2016 and 2018, proceeds from the bonds, expected to be rated Aa1 by Moody’s Investors Service, will be used to refinance commercial paper. Chevron is finding it increasingly difficult to expand production and add reserves as many of the remaining pools of cheap, easily accessible resources are owned by governments and national oil companies. This was the biggest debt issuance by the integrated player since last July, when oil prices started free falling. The company will likely utilize the proceeds to refinance short-term debts and for normal corporate activities. Out of the total offering, Chevron sold five-year $1.75 billion bonds having 1.961% coupon. The notes yield only 50 basis points more than the Treasury securities having the same maturity. Hence, in comparison with the average company borrowings, Chevron will bear a lower cost of debt especially in a weak crude pricing environment. With the plummeting crude price, Chevron’s share price has fallen almost 15% since July According to the lender’s, investing money in Chevron’s bond is safe as it is one of the largest publicly traded oil and gas players in the world, based on proved reserves. (This was the last update as of February 25, 2015)

In November 2013, Bank of America issued the first ever corporate green bond also used to finance renewable energy projects such as wind, solar, geothermal and energy efficiency projects such as lighting retrofits, co-generation, and building insulation in residential, commercial and public properties. In May 2015, Bank of America issued our second green bond for $600 million in aggregate principal amount, part of our ongoing commitment to accelerating the transition to a low-carbon economy. The bond will help to fund renewable energy and energy efficiency projects under the company’s $70 billion multi-year environmental business commitment. In 2013, the company launched its current 10-year, $50 billion environmental business initiative to advance low-carbon economic solutions through lending, investing and facilitating capital, providing advice and developing solutions for clients around the world. The $50 billion commitment builds upon the company’s initial $20 billion multi-year commitment announced in 2007 and achieved four years ahead of schedule.(This was the last update as of April 30, 2015)

Cited Source:
http://www.bloomberg.com/businesses