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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. (Note: Do not round intermediate calculations.) Coupon 8.13% Maturity 01-01-2026 Last Price $82.25 Last Yield 11.11% EST Spread 6.20 UST (Years) 10 EST Volume (1000s) 72,070 Company Schubert Inc. Chapman Inc 9.63% 01-01-2046 $77.11 12.58% 7.15 30 65,275 5.62% 1.37 5 Rust Inc. Murphy & Co. 4.50% 5.38% 01-01-2021 01-01-2021 $95.18 $101.02 59,277 57,465 5.14% 0.89 5 Last Price Last Yield Coupon 8.13% Maturity 01-01-2026 EST Spread 6.20 UST (Years) 10 EST Volume (1000s) 72,070 $82.25 11.11% Company Schubert Inc. Chapman Inc 9.63% 01-01-2046 $77.11 12.58% 7.15 30 65,275 1.37 4.50% 5.38% 01-01-2021 01-01-2021 $95.18 $101.02 5.62% 5.14% u un 59,277 57,465 0.89 Rust Inc. Murphy & Co. Pickman Inc. 7.75% 01-01-2026 $92.36 4.01 10 56,305 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% O 10.15% O 12.58% O 12.05% Which bond is trading at a premium? O Pickman Inc. O Schubert Inc. O Chapman Inc. O Murphy & Co
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