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 son 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 VTM 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 The Blue Co.'s bonds. EST Spread UST (Years) EST Volume (1000s) Company Vandelay Inc. Coupon Maturity 8.25% 01-01-2026 5.80% 01-01-2021 Last Price $97.87 Last Yield 8.57% 2.37 10 59,725 5.98% 0.58 S 52.930 8.37% $99.22 $104.07 $88.14 2.17 10 Monic Corp. Demo Inc. Waters Co. The Blue Co 46.932 8.98% 01-01-2026 9.63% 01-01-2046 4.13% 01-01-2021 10.98% 4.03 30 45,120 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? O Demo Inc. O Monic Corp. O The Blue Co. O Vandelay Inc. Company Coupon Maturity Vandelay Inc. 8.25% 01-01-2026 Monic Corp. 5.80% 01-01-2021 Demo Inc. 8.98% 01-01-2026 Waters Co. 9.63% 01-01-2046 The Blue Co. 4.13% 01-01-2021 you were to calculate the yield on a security Which bond is trading at a premium? O Demo Inc. O Monic Corp. O The Blue Co. O Vandelay Inc. Last Price $97.87 $99.22 $104.07 $88.14 Last Yield EST Spread 8.57% 2.37 5.98% 0.58 8.37% 2.17 10.98% 4.03 6.26% 0.86 -year U.S. Treasury security, the yield wi $89.17 $90.98 $92.86 $87.46 U Fill in the value of The Blue Co.'s bonds. Company Last Price Last Yield EST Spread UST (Years) EST Volume (1000s) Coupon 8.25% Maturity 01-01-2026 Vandelay Inc. $97.87 8.57% 2.37 10 39,725 Monic Corp 5.80% 01-01-2021 $99.22 5.98% 0.58 5 52.930 Demo Inc. 8.98% 01-01-2026 $104.07 8,37% 2.17 10 46.932 Waters Co. 01-01-2046 $88.14 10.98% 4.03 30 45,120 9.63% 4,13% The Blue Co 01-01-2021 6,26% 0.86 5 43,960 If you were to calculate the vield on a security with a 10-year U.S. Treasury security, the yield will be equal to which bond is trading at a premium? 4.30% 2.17% Dema Inc. 6.20% Monic Corp The Blue Co 2.37% O Vandelay Inc