The following bond list is from the business section of a newspaper on January 1, 2016. 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 labelled 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 Volume shows the number of bonds traded during the day. Prices are stated relative to a par value of $100. Fill in the nominal YTM for Pickman Inc.'s bonds. Last Yield UST (Years) 11.11% EST Spread 6.20 7.15 30 Schubert Inc. Chapman Inc. Rust Inc. Murphy & Co. Pickman Inc. 8.13% 9.63% 4.50% 5.38% 7.75% 01-01-2026 01-01-2046 01-01-2021 01-01-2021 01-01-2026 $82.25 $95.09 $95.18 $101.02 $94.61 10.15% 5.62% 5.14% EST Volume (1000s) 72,070 65,275 59,277 57,465 56,305 1.37 0.89 5 3.65 If Chapman Inc. wants to issue new 30-year bonds today, what coupon rate would the bonds have to pay to be issued at par? 12.05% 12.58% 11.65% 10.15% Which bond is trading at a premium? O Rust Inc. Pickman Inc. Schubert Inc. Murphy & Co. Excel Online Structured Activity: Bond valuation An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.2%. Bond C pays a 11.5% annual coupon, while Bond Z is a zero coupon bond. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Assuming that the yield to maturity of each bond remains at 8.2% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Do not round intermediate calculations. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond Z # DIU _ B C D E G H Bond valuation Bond C Bond Z Length of maturity in years Face value Yield to maturity Annual coupon $1,000 8.20% 11.50% $1,000 8.20% 0.00% 7 Formulas Price of Bond C Price of Bond Z Years to Maturity Price of Bond C #N/A #N/A #N/A #N/A #N/A Price of Bond Z #N/A #N/A #N/A #N/A #N/A Time Paths of Bonds C and Z Bond Value $350 Bond C Bond Z Years Remaining Until Maturity