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7 . (15 points) Consider the following corporate bond price quote in the financial page: Symbol Coupon Maturity Moodys Last Yield% (1) BP.JH 3.375% 08/08/2045

7. (15 points) Consider the following corporate bond price quote in the financial page:

Symbol

Coupon

Maturity

Moodys

Last

Yield%

(1) BP.JH

3.375%

08/08/2045

Baa

93.333

?????

(2) MP.LX

9.875%

12/08/2045

Baa

?????

6.666

It is October 23, 2021 and the yields of the two bonds are semiannually compounded.

(a) (3 points) How are the two bonds called according to the bond rating system?

(b) (8 points) Fill in the missing information (?????) for the two bonds. You must provide necessary information from the financial calculator including SDT, CPN, RDT, and PRI/YLD.

(c) (4 points) What is the expected one-year capital gains yield for (1)BP.JH bond? Provide the information on SDT, CPN, RDT, and YLD for the next year.

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