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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
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 EST UST EST Volume Last Yield 11.11% 12.58% 5.62% 5.14% (Years) (1000s) Company Schubert Inc. Chapman Inc. Rust Inc Murphy & Co. Pickman Inc. Coupon Maturity Price Spread 10 8.13% 01-01-2026 $82.25 9.63% 01-01-2046 $77.11 4.50% 01-01-2021 $95.18 5.38% 01-01-2021 $101.02 7.759001-01-2026 $92.36 6.20 7.15 1.37 0.89 4.01 72,070 65,275 59,277 57,465 56,305 30 10 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? O 11.65% 12.58% 12.05% 10.15% Which bond is trading at a premium? Rust Inc. O Murphy & Co O Schubert Inc O Chapman Inc
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