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Ch 07: Assignment - Bonds and Their Valuation 1e TUIOwinu uuIiu uSL IS I1UII ue uUsHess SLUUT UI a 1lldl idi ewspdper un Jd! IUdi

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Ch 07: Assignment - Bonds and Their Valuation 1e TUIOwinu uuIiu uSL IS I1UII ue uUsHess SLUUT UI a 1lldl idi ewspdper un Jd! IUdi y . 2UI0. HSSuTe ulaL eaLIn bond shown matures on January 1 in 5, 10, or 30 years. Each bond shown pays a semiannual coupon-the coupon rate is in the column labelled Coupon. The Last Price and Last Yield columns indicate each bond's price and YTM at the end of trading. EST Spread indicates the bond's spread above the relevant U.S. Treasury benchmark, expressed as a percentage. UST indicates which U.S. Treasury security maturity is the relevant benchmark for each bond. EST Volume shows the number of bonds traded during the day. Notice also that prices are stated relative to a par value of $100. Assume all bonds have the same default premium. Fill in the value of The Blue Co.'s bonds. EST Volume UST EST (1000s) (Years) Spread Last Yield Last Price Maturity Coupon Company 59,725 10 2.37 $97.87 8.57% 01-01-2026 8.25% Anky Co. 52,930 5 0.58 5.98% $99.22 5.80% 01-01-2021 Swing Inc. 46,932 10 2.17 8.37 % $104.07 01-01-2026 Acme Inc. 8.98% 45,120 30 4,03 10.98% $88.14 01-01-2046 9.63% Ashpool Inc. 43,960 5 0.86 6.26% 4.13 % 01-01-2021 The Blue Co. If you were to calculate the yield on a security with a 10-year U.S. Treasury security, the yield will be equal to Which bond is trading at a premium? O Anky Co. O Swing Inc O Acme Inc. O The Blue Co

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