Interpreting Relations among Bond Price, Coupon, Yield, and Credit Rating The following appeared in Yahoo! Finance (finance.yahoo.com)

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Interpreting Relations among Bond Price, Coupon, Yield, and Credit Rating The following appeared in Yahoo! Finance (finance.yahoo.com) regarding outstanding bonds issued by Citigroup Inc.

Price Coupon (%) Maturity Yield to Maturity (%) Fitch Ratings 129.87 6.625 2028 3.725 A 114.41 4.950 2043 4.095 A

a. Discuss the relation among the coupon rate, price, and yield for the bond maturing in 2028.

b. Compare the yields on the two bonds. Why are the yields different when the credit ratings are the same?

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Financial Statement Analysis And Valuation

ISBN: 9781618532336

5th Edition

Authors: Peter D. Easton, Mary Lea McAnally, Gregory A. Sommers

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Question Posted: Oct 25, 2024 04:02 AM

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Interpreting Relations among Bond Price, Coupon, Yield, and Credit Rating The following appeared in Yahoo! Finance (finance.yahoo.com)

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Financial Statement Analysis And Valuation

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