Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please check and correct with feedback. Thanks for your help! 7. Bond listings Aa Aa The following bond list is from the business section of
Please check and correct with feedback. Thanks for your help!
7. Bond listings Aa Aa The following bond list is from the business section of a newspaper on January L, 2005. 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 benchmark for each bond. EST $ VOL shows the number of bonds traded during the day. Prices are stated relative to a par value of 100 COUPON LAST LAST YLD (%) EST SPREAD 6.20 7.15 1.37 0.89 3.89 UST 10 30 (000's) 72,070 65,275 9,277 57,465 56,305 MATURITY PRICE 8.125 01-01-2015 $82.25 5 01-01-2035 $80.48 4.500 01-01-2010 $95.18 5.375 01-01-2010 $101.02 .75001-01-2015 $93.11 (96) COMPANY Schubert Electrical Chapman Industries 9.62 Rust Enterprises Murphy & Co Pickman Inc 12.05 5.62 5.14 72 10 What is the nominal YTM for Pickman Inc.'s bonds? 8.80% 8.42% 8.92% Q 8.56% 8.68% If Chapman Industries wanted to issue new bonds today, what coupon rate would the bonds have to pay to be issued at par? 10.15% 11.65% 10.33% 12.58% 12.05%Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started