Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(3'*4=12') In 2024 Cigna issued international bonds with a 3.4% coupon rate for USD 1,500 millions maturing in 2030. Bonds were sold at a

image text in transcribed

(3'*4=12') In 2024 Cigna issued international bonds with a 3.4% coupon rate for USD 1,500 millions maturing in 2030. Bonds were sold at a price of 99.832% (or 998.32 dollars). Bookrunners are Bank of America Merrill Lynch, Goldman Sachs, Morgan Stanley, etc.. The yield to maturity in 2024 Was Blank 1%. Suppose the 10-year treasury bond yield is 2.01%, the corporate bond yield spread would be Blank 2%, which is mainly contributed by Blank 3 premium (choose from inflation/default risk/liquidity/maturity risk). If the interest rate now is 4.5%, the price you are willing to pay for this bond in 2024 is $Blank 4. Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer Blank 4 Add your answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets and Institutions

Authors: Anthony Saunders, Marcia Cornett

6th edition

9780077641849, 77861663, 77641841, 978-0077861667

More Books

Students also viewed these Finance questions