13. 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 couponthe coupon rate is in the column labelled Coupon.

The Last Price and Last Yield columns indicate each bonds price and YTM at the end of trading. EST Spread indicates the bonds 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 Keedsler Co.s bonds.

Company	Coupon	Maturity	Last Price	Last Yield	EST Spread	UST (Years)	EST Volume (1000s)
Wernham Inc.	8.25%	01-01-2026	$97.87	8.57%	2.37	10	59,725
Northern Inc.	5.80%	01-01-2021	$99.22	5.98%	0.58	5	52,930
Logistics Corp.	8.98%	01-01-2026	$104.07	8.37%	2.17	10	46,932
Ashpool Inc.	9.63%	01-01-2046	$88.14	10.98%	4.03	30	45,120
Keedsler Co.	4.13%	01-01-2021		6.26%	0.86	5	43,960

If you were to calculate the yield on a security with a 10-year U.S. Treasury security, the yield will be equal to .

Which bond is trading at a premium?

Northern Inc.

Keedsler Co.

Ashpool Inc.

Logistics Corp.