Hello. You helped me a couple of days ago. I needed help with these additional questions. Two of the pages has options to choose from percentages. Please choose one out of the four and please show work. I attached three documents

2. Bond listings and yield spreadr Aa AA ,,t; The following bond list is from the business section of a newspaper on January 1, 2012. Notice that each 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 labeled 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, given as a percentage. UST indicates which U.S. Treasury security maturity is the relevant benrhmark for each bn& EST Volume shows the number of bonds traded during the day. Prices are stated relative to a par value of 9100. Fill in the nominalYTM for Pickman lust Iy, Inc.t bonds. 9.63% 01-01-2042 $80.48 4.50% 01-01-2017 $95.18 t'lurphy & Co, Pickman Inc. 7.75o/o 0r-01-2022 12.05% 7.15 5.52% 1:37 5.14% 0.89 3.89 $93.11 30 65,275 59,277 Il:19I 10 56,305 F"6J F ?r ?,, If Chapman Inc. wants to issue new 3O-year bonds today. what coupon rate would the bonds have to pay to be issued at par? ?- *, G o o o 10.15% 12.58% 11.65q6 12.05% Which bond ls trading at a premium? o o o o Murphy & Co, Rust Inc. Chapman Inc. Pickman Inc. 6y r,f6g Yield to Matrity and Yield to Call Arnot International's bonds have a curent ry*et price of $1,200. The bonds have an 11% annual ioupon pafmont, a $1,000 face value, and l0 years left until maturity. The bonds mayle called in 5 years atl09Yo offace value . The bond's indenture indicates ttlat the call provision gives the firur the right to call them at the end of each year beginning in Year 5. In Year 5, they may be called atl0gyo of face value, but in each of the next 4 years the call percentage will decline by I percertage point. Thus, in Year 6 they may be called at 108o/o of face value, in Year 7 they may be calted atl07a/q of face value, and so on. If the yield curve is horizontal and interest rates rsmain at their curent level, when is the latest that investors might expect the firm to call the bonds? tI years Please enter a whole nrmrbr, with no decimal pint 1. Bond yil& Aa Aa ,,jj!-;, Coupon payments are fixed. but the percentage retum that investors receive varies based on market conditions. This percentage retum is referred to as the bond's yrbld. to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTI'I equals the expected rate of rehrm under cerbin assumptions. Which of the following is one of these assumptions? Yietd 0 G me bond is callable. 'fhe probability of default is zero. Consider the case of Eades Corp. 6,9{i7* Eades Corp. has 996 annual ctxrpon bonds that are callable and have 18 years left 1 a47a, .td t0 4b /0 until maturity. The bonds have a par value of $1,000, and their current market price is $1,010.35. However, Eades Corp. may call the bonds in eight years at a call pnce of b ltft, $1,050. l/Yhat are the YTM and yield to call (YIC) on Eades Corp.'s bonds? 7.1\\ iL- ( V r,, l?, ;. * al? If interest rats are expected to remain constant what is the best estimate of the remainirE life left for Eades Corp.'s t I #/ I W"tu -t' bonds? O tg years O 5 years @ tl years G I years If Eades Corp. issued netr bonds today, what cuJpon rate must the \\ ,a* ( u.,f bonds have to be issued at par? s,5re I" A ? i; Z {r' ) "!, .t;,r "':, .iY ./. -, t--\\ i " v"e. v' ,t