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270 PART TWO O Investments 18. EX percer graph 14. Perusing the corporate bond quotations, you write down some summary information: COMPANY LAST LASTEST EST
270 PART TWO O Investments 18. EX percer graph 14. Perusing the corporate bond quotations, you write down some summary information: COMPANY LAST LASTEST EST SVOL (TICKER) COUPON MAT PRICE YIELD SPREAD UST (000) Wal-Mart Stores WMT 4.550 10 years 99.270 4.64947 10 66,830 Wal-Mart Stores WMT 4.125 8 years 99.554 4.200 2 10 50,320 Liberty Media L 5.700 10 years 102.750 5.314 112 10 26,045 Ford Motor Credit F 7.250 8 years 107.407 6.012 183 10 22,863 percer linear 19.GI (DRII of $20 on D partie share stock inves different Mar a. Which company is the riskiest? Why? b. Which bond has the highest default risk? Why? c. Why would Wal-Mart have two bonds trading at different yields? d. Compute the current yield for each of the four bonds. Compute yield to maturity for each of the four bonds. 15. You run across the following bond quotation on a Friday. June Sept Dec 20
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