Texas Instruments Incorporated (TXN)

Obtain Bond Information:

Find information about bonds and bond yields on FINRA (Financial Industry Regulatory Authority) athttp://www.finra.org. When the website appears select “For Investors”. When the new page appears, select “Tools and Calculators”. Scroll down and select “FINRA Market Data”. When the new page appears, find the menu on the left side of the page and select “Bonds”.

Treasury Yield Curve:

When the new page appears, the “Market At-A-Glance” tab has been selected. Scroll down and under “Bond Yield and Performance At-A-Glance” the “Treasury Yield” tab has been selected. You will see the yield curve, along with the data used to construct it.

1. Describe the most recent yield curve and identify the lowest and highest yields.Keep in mind that the horizontal axis is not drawn to scale.

2. How do yields today compare to yields a year ago?

Corporate Bonds:

Under “Market Data Center Bonds Guide” Select the “Search” tab. Type yourcompany’s stock symbol in the “Symbol” box.A list of bonds that the company has issued and that have recently traded will appear. (You may be asked to Agree to terms and conditions.)

Column headings include coupon, maturity, rating, price, and yield.Click on the maturity column heading so that the bonds will be listed from shortest to longest maturity. Bond prices and coupons are expressed as a percentage of par value. The “Yield” variable refers to Yield to Maturity based upon the listed price.

If the price is not listed, the bond may not have traded recently. If the yield is not listed, the bond may have characteristics that make it difficult to determine.

Describe the bonds:

3. How many bonds are listed for your company?

4. What is the shortest maturity? What is the longest maturity?

5. What is the lowest yield to maturity? What is the highest yield to maturity? If one of these numbers appears unusual (such as a negative yield or a very high yield) identify this number along with the closest more typical yield.

6. What is the lowest coupon rate? What is the highest coupon rate?

7. Does there appear to be a relationship between yield to maturity and time to maturity for these bonds? Explain.

8. Do any of the yields appear unusually high or low relative to the other bonds on the list? If so, explain why you think so, and what might cause this in this case.

9. What is the bond rating for this company’s bonds? What does this tell you about these bonds?

Find the longest maturity bond for which there is a price and yield listed.

10. Describe this bond: identify the symbol, maturity date, coupon rate, price, and yield to maturity for this bond.

11. Is this bond selling at a discount or a premium? What market changes causedthis?

12. Calculate the current yield and capital gain yield on this bond. How do theseyields relate to the yield to maturity and the bond price?

Select the longest maturity bond for which there is a price and yield. Do not include bonds listed with another company name (these were acquired through a merger or other activity). A new page will appear containing details of the bond.

13. Describe the bond: When was it issued? How much was initially borrowed? How much of this debt is still outstanding? What is its seniority and security? Is there a sinking fund? Is the coupon fixed or variable? Is the coupon paid annually or semiannually?

Note: If none of this information appears, select a different bond.

Compare corporate and treasury yields:

14. How do the treasury yields compare to the company’s bond yields? Does this make sense? Why or why not?

Compare to personal loan rates:

15. To put the corporate bond rates into perspective, go to bankrate.com. Click on Personal Loans. Look at the first three lenders. Compare the rates to the corporate bond rates and explain how and why they are different.