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ssignment - Bonds and Their Valuation 10. Bond listings and yield spreads The following bond list is from the business section of a financial newspaper

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ssignment - Bonds and Their Valuation 10. Bond listings and yield spreads The following bond list is from the business section of a financial newspaper on January 1, 2016. Assume that each bond shown matures on January 1 in 5, 10, or 30 years. Each bond shown pays a semiannual coupon and 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 US Treasury benchmark, expressed as a percentage. UST indicates which US 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 Keedsler Co.'s bonds. Last Price Last Yield Coupon 8.25% 5.80% $97.87 8.57% Company Anky Co. Side Corp Demo Inc. Wizard Co. Keedster Co. Maturity 01-01-2026 01-01-2021 01-01-2026 01-01-2046 01-01-2021 EST Spread 2.37% 0.58% 2.17% $99.22 UST (Years) 10 5 8.98% $104.07 5.98% 8.37% 10.98% EST Volume (1000s) 59,725 52,930 46,932 45,120 43,960 10 9.63% $88.14 4.03% 30 4.13% 6.26% 0.86% 5 If you were to calculate the yield on a security with a 10-year US Treasury security, the yield will be equal to Which bond is trading at a premium? Anky Co. O Demo Inc. Side Corp. O Wizard Co

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