Question
Annual Bonds. The market price is the price as of today (2022). 1. Lockheed Martin has a bond outstanding with an A- rating, $1,000 par
Annual Bonds. The market price is the price as of today (2022). 1. Lockheed Martin has a bond outstanding with an A- rating, $1,000 par value, and 4.7% coupon rate paid annually. This bond was issued in 2015 and matures in 2046. If the current market rate is 3.703%, what is the price of the bond? 2. AT&T has a bond outstanding with a BBB rating, 5.3% coupon, $1000 par value, and matures in 2058. The bond is callable in 2037 at par value. The bond currently sells for $1,146.98. What are the yield to maturity and the yield to call? Do you think the bond could be called? Explain. 3. Boeing has a bond outstanding with a BBB- rating, 6.875% coupon, $1000 par value, and matures in 2043. The bond currently sells for $1,279.60 You bought the bond in 2016 at a price of $1515.0. What would be your yield if you sold the bond today at its current market price?
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