Swing Inc.

Ashpool Inc.

Acme Corp.

Keedsler Co.

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. Company Coupon Maturity Last Price Last Yield EST Spread UST (Years) EST Volume (1000s) Stay Corp. 8.25% 01-01-2026 $97.87 8.57% 2.37% 10 59,725 Swing Inc. 5.80% 01-01-2021 $99.22 5.98% 0.58% 5 52,930 8.98% 01-01-2026 $104.07 8.37% 2.17% 10 46,932 Acme Corp. Ashpool Inc. 9.63% 01-01-2046 $88.14 10.98% 4.03% 30 45,120 Keedsler Co. 4.13% 01-01-2021 6.26% 0.86% 5 43,960 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? Company Coupon Maturity Last Price Last Yield EST Spread US Stay Corp. 8.25% 01-01-2026 8.57% 2.37% $97.87 $99.22 5.80% 01-01-2021 5.98% 0.58% 8.98% 01-01-2026 $104.07 8.37% 2.17% Swing Inc. Acme Corp. Ashpool Inc. Keedsler Co. 9.63% 01-01-2046 $88.14 10.98% 4.03% 4.13% 01-01-2021 6.26% 0.86% If you were to calculate the yield on a securit $92.86 0-year US Treasury security, the yield will $89.17 Which bond is trading at a premium? $90.98 Swing Inc. 587.46 Ashpool Inc. Acme Corp Keedster Co. Yield EST Spread UST (Years) EST Volume (10005) 57% 2.37% 10 59,725 98% 0.58% 5 52,930 37% 2.17% 10 46,932 0.98% 4.03% 30 45,120 -.26% 0.86% 5 43,960 Treasury security, the yield will be equal to 2.37% 2.17% 6.20% 4.30% Grade It Now Save & Continue hp