Question
The attached document from the NY Times provides the FINRA TRACE Corporate Bond Data at the bottom third of the page. The table provides coupon
The attached document from the NY Times provides the FINRA TRACE Corporate Bond Data at the bottom third of the page. The table provides coupon rates and yield to maturity for several outstanding investment grade corporate bonds. Please use the table as well as other sources (as needed) to respond to the following questions. Provide details of your computation when applicable.
1. What is the yield to maturity (YTM) on the 10-year US-Treasury?
2. Compute the following credit spreads and discuss their potential sources in term of risk quality and source of risks...
2.1 The 10-Year US-Treasuries YTM versus that of the Johnson & Johnson (JNJ4340193) Bond
2.2 The YTM of the Johnson & Johnson (JNJ4340193) Bond versus that of Abbott Labs (ABT4427939)
2.3 The YTM of the Abbott Labs (ABT442793) Bond versus that of Petroleos Mexicanos (PEMX434250
Treasury Bills, Notes and Bonds
Most recent issues
Maturrty | % yield | Change |
3-month | 0.98% | 0.0001 |
6-month | 1.06% | -0.0001 |
2-year | 1.29% | -0.0001 |
5-year | 1,72% | +0.0014 |
10-year | 2.16% | 0.0001 |
30-year | 2.81% | --0.002 |
At 5:05 PM ET
Data delayed at least 15 minutes
Financial Tools
Analysis Tools
|
|
Screener Portfolio Alerts
[l>
FINRA TRACE Corporate Bonds
YIELD 52-WEEK TOTAL RETURN
Market Summary
At Close 06/02/2017: The price on the benchmark 10-year bond closed out
the week at NaN/32, yielding2.16%
while the 2-year note finished at
NaN/32, yielding 1.29%. The 6-month and 3-month T-bill's discount rates
closed at 0.00% and 0.00%,
respectively.
Treasury Bills, Notes and Bonds
Most recent issues
Maturrty | % yield | Change |
3-month | 0.98% | 0.0001 |
6-month | 1.06% | -0.0001 |
2-year | 1.29% | -0.0001 |
5-year | 1,72% | +0.0014 |
10-year | 2.16% | 0.0001 |
30-year | 2.81% | --0.002 |
At 5:05 PM ET
Data delayed at least 15 minutes
Financial Tools
Analysis Tools
|
|
Screener Portfolio Alerts
[l>
FINRA TRACE Corporate Bonds
YIELD 52-WEEK TOTAL RETURN
Market Summary
At Close 06/02/2017: The price on the benchmark 10-year bond closed out
the week at NaN/32, yielding2.16%
while the 2-year note finished at
NaN/32, yielding 1.29%. The 6-month and 3-month T-bill's discount rates
closed at 0.00% and 0.00%,
respectively.
Treasury Bills, Notes and Bonds
Most recent issues
Maturrty | % yield | Change |
3-month | 0.98% | 0.0001 |
6-month | 1.06% | -0.0001 |
2-year | 1.29% | -0.0001 |
5-year | 1,72% | +0.0014 |
10-year | 2.16% | 0.0001 |
30-year | 2.81% | --0.002 |
At 5:05 PM ET
Data delayed at least 15 minutes
Financial Tools
Analysis Tools
|
|
Screener Portfolio Alerts
[l>
FINRA TRACE Corporate Bonds
YIELD 52-WEEK TOTAL RETURN
Market Summary
At Close 06/02/2017: The price on the benchmark 10-year bond closed out
the week at NaN/32, yielding2.16%
while the 2-year note finished at
NaN/32, yielding 1.29%. The 6-month and 3-month T-bill's discount rates
closed at 0.00% and 0.00%,
respectively.
Treasury Bills, Notes and Bonds
Most recent issues
Maturrty | % yield | Change |
3-month | 0.98% | 0.0001 |
6-month | 1.06% | -0.0001 |
2-year | 1.29% | -0.0001 |
5-year | 1,72% | +0.0014 |
10-year | 2.16% | 0.0001 |
30-year | 2.81% | --0.002 |
At 5:05 PM ET
Data delayed at least 15 minutes
Financial Tools
Analysis Tools
|
|
Screener Portfolio Alerts
[l>
FINRA TRACE Corporate Bonds
YIELD 52-WEEK TOTAL RETURN
Market Summary
At Close 06/02/2017: The price on the benchmark 10-year bond closed out
the week at NaN/32, yielding2.16%
while the 2-year note finished at
NaN/32, yielding 1.29%. The 6-month and 3-month T-bill's discount rates
closed at 0.00% and 0.00%,
respectively.
INVESTMENT GRADE | HIGH YIELD | CONVERTIBLES | 03/17/201 | ||||
|
| Credit rating | Price |
| |||
Issuer name (symbol) | Coupon % | Maturity Moody's S.&P. Fitch | Last Change | Yield% | |||
Johnson & Johnson JNJ4340193 | 2.45% | Mar '12026 Aaa AAA AAA | 95.418 +0.468 | 3.04% | |||
Verizon Communications Inc VZ4466757 | 4.13% | Mar '12027 NR BBB+ A- | 100.856 +0.27 | 4.02% | |||
Sumitomo Mrtsui Finl Group Inc SMFG4381271 | 2.06% | Jul '12021 A1 A- n.a. | 96.905 --0.105 | 2.83% | |||
Total Cap Cda Ltd TOT3954266 | 1.45% | Jan '12018 Aa3 A+ AA- | 100.062 +0.303 | 1.37% | |||
Bnp Paribas / Bnp Paribas Us Medium Term BNPQF3900102 | 2.38% | Sep '12017 A1 A A+ | 100.334 +0.051 | 1.67% | |||
Verizon Communications Inc VZ4466641 | 5.50% | Mar '12047 NR BBB+ A- | 103.955 +1.03 | 5.24% | |||
Petroleos Mexicanos PEMX4342501 | 4.50% | Jan '12026 Baa3 BBB+ BBB+ | 96.306 +2.31 | 5.02% | |||
Abbott Labs ABT4427939 | 3.75% | Nov '12026 Baa3 BBB BBB | 99.12 +0.194 | 3.86% | |||
Altria Group Inc MO.HC | 9.70% | Nov '12018 A3 A- BBB+ | 112.542 +0.083 | n.a. | |||
Verizon Comm unications Inc VZ4466640 | 5.25% | Mar '12037 NR BBB+ A- | 102.51 +0.493 | 5.05% | |||
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