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The following bond list is from the business section of a newspaper on January 1,2012 . Notice that each bond shown matures on January 1
The following bond list is from the business section of a newspaper on January 1,2012 . 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 Yield to Maturity columns indicate each bond's price and YTM at the end of trading. EST Spread indicates the bond's spread above the relevant Government of Canada benchmark bond, expressed as a percentage. GCT indicates the maturity of the relevant Government of Canada benchmark bond for each bond listed. Notice also that prices are stated relative to a par value of $100. Assume all bonds have the same default premium. Fill in the nominal YTM for Pickman Inc.'s bonds on January 1, 2012. 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% 10.15% 12.58% 11.65% Which bond is trading at a premium? Murphy \& Co. Chapman Inc. Rust Inc. Pickman Inc
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