14 & 15

35 pts A 3X coupon bond with annual coupon payments and 10 years to maturity has a par value of 51.000 and market price of $950. New 10 year treasury notes with a coupon rate of 2% that are otherwise similar are being issued at par. What is the credit spread for your bond expressed in basis points (bps)? 100 hp 1.00 bps 160 bps 1.60 bps Question 15 8 pts A6% coupon bond with semi-annual coupon payments and 5 years to maturity has a par value of $1,000 and market price of $925. What is the bond's yield to maturity? 3.92% 7.87% 7.84% 3.94%