4. Answer the following questions:

What bond did you choose? What is the bond's credit rating, coupon rate and payment frequency, offering and maturity date, and offering price?

I chose was the Allstate Corp Bond. The bond was given a credit rating of Baa1 by Moodys ratings, and also a BBB by Standard & Poor's ratings. The bonds coupon rate is 6.5% and the payment frequency is semi-annual. The bonds offering date is 05/03/2007 while the maturity date is 05/25/2067 and the offering price is $94.82.

B. Is the bond a junk or investment-grade bond?

The bond is an investment-grade bond.

C. Using the offering price found in step 3 and assuming the FV = 100 what is the YTM of your bond on offering (This means compute the YTM as if today was the offering date, show all work).

D. Compute the using the information found in step 3, compute the current YTM.

Please help with C & D of this question.

ALLSTATE CORP ALLSTATE CORP