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Pacific healthcare case study number 13

answer these questions

PACIFIC HEALTHCARE (A)

Bond Valuation.

1. Create a summary of the yields of each bond. Why do the yields of the bond's coupon rates vary so widely?

2. Why do the current yields and capital gain yields of the two twenty-five year bonds differ?

3. Do tax-paying investors prefer one of the 25-year bonds ove the other? Why?

4. Which bond has the most price risk?

5. What is the yield-to call on each of the 15 and two of the 25-year bonds?

6. Should Pacific consider calling any of its bonds?Why?