10. Bond listings and yield spreads The following bond list is from the business section of a financial newspaper on January 1, 2016. Assume that each bond shown matures on January 1 in 5, 10, or 30 years. Each bond shown pays a semiannual coupon and the coupon rate is in the column labeled Coupon. The Last Price and Last Yield columns indicate each bond's price and YTM at the end of trading. EST Spread indicates the bond's spread above the relevant US Treasury benchmark, expressed as a percentage. UST indicates which US Treasury security maturity is the relevant benchmark for each bond. EST Volume shows the number of bonds traded during the day. Notice also that prices are stated relative to a par value of $100. Assume all bonds have the same default premium. Fill in the value of Kumatsu Co.'s bonds. Company Coupon Vandelay Inc. 8.25% Maturity 01-01-2026 Last Price Last Yield EST Spread UST (Years) EST Volume (1000s) $97.87 8.57% 2.37% 10 59,725 Global Corp. 5.80% 01-01-2021 $99.22 5.98% 0.58% 5 52,930 ABC Inc. 8.98% 01-01-2026 $104.07 8.37% 2.17% 10 46,932 Waters Co. Kumatsu Co. 9.63% 4.13% 01-01-2046 $88.14 10.98% 4.03% 30 45,120 01-01-2021 6.26% 0.86% 5 43,960 If you were to calculate the yield on a security with a 10-year US Treasury security, the yield will be equal to Which bond is trading at a premium? Waters Co. ABC Inc. Kumatsu Co. Global Corp.