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13. Bond listings and yield spreads Aa Aa The following bond list is from the business section of a financial newspaper on January 1, 2016.

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13. Bond listings and yield spreads Aa Aa 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-the coupon rate is in the column labelled 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 U.S. Treasury benchmark, expressed as a percentage. UST indicates which U.S 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 Virtucon Co.'s bonds UST EST Volume EST Company Coupon Maturity Last Price Last Yield Spread (Years) (1000s) 59,725 Sonky Co 8.25% 01-01-2026 $97.87 8.57% 2.37 5.98% 5.80% 01-01-2021 $99.22 0.58 52,930 Taggart Corp 46,932 8.37% 10 Housing Co 8.98% 01-01-2026 $104.07 2.17 45,120 4.03 30 Newtown Inc. 9.63% 01-01-2046 $88.14 10.98% 6.26% 0.86 Virtucon Co 4.13% 01-01-2021 43,960 $87.46 $90.98 $92.86 If you were to calculate the yield on a security $89.17 S. Treasury security, the yield will be equal to Which bond is trading at a premium? Virtucon Co Housing Co O Newtown Inc. O Sonky Co

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