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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 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 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. 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? 11.65% 12.58% 10.15% 12.05% Which bond is trading at a premium? Pickman Inc. Rust Inc. Chapman Inc. Murphy & Co
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