pter $18$

i

Assume that Kendal Corp. has an outstanding bond issue with a par value of $$1,000$ and a current market price of $$1,040\mathrm{.}70$ per bond. The bond has seven years remaining and a coupon rate of $6$ percent. $($Use Excel to answer this question. Enter your answer as a percent rounded to $2$ decimal places.$)$

a$.$ Find the current yield to maturity for the Kendal Corp. bond. $($Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.$)$

Yield to maturity

b$.$ If the bond trades at a yield spread of $2\mathrm{.}22$ percent above comparable U$.$S$.$ Treasury notes, what must the current yield on Treasury notes be$?($Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.$)$

Treasury yield $$

c$.$ If the Kendal bond has a make$-$whole call premium of $130$ basis points above the U$.$S$.$ Treasury rate, what is the make$-$whole call premium? $($Do not round intermediate calculations. Enter the make$-$whole yield answer as a percent rounded to $2$ decimal places.

Enter the make$-$whole orice answer in dollars rounded to $2$ decimal olaces.$)$