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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
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 Yield to EST GCT Company Schubert Inc Chapman Inc Rust Inc. Murphy & Co Pickman Inc. Coupon 8.13% 9.63% 4.50% 5.38% 7.75% Maturity 01-01-2022 01-01-2042 01-01-2017 01-01-2017 01-01-2022 Last Price Maturity Spread (Years) $82.25 $77.11 $95.18 6.20 7.15 1.37 0.89 4.01 10 11.11% 12.58% 5.62% 5.14% 30 $101.02 $92.36 |8.80% 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 10.15% 12.05% O 12.58% O 11.65% Which bond is trading at a premium
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