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Using the bond information below, calculate some missing value for each of the listed securities. Issuer Years to Maturity Par Value Coupon Current Price Payments/Year

Using the bond information below, calculate some missing value for each of the listed securities.

Issuer

Years to Maturity

Par Value

Coupon

Current Price

Payments/Year

Rating

Sears

15

$1,000

.065

2

A

Xcom

10

$1,000

None

None

BBB

Gap

12

$1,000

.08

$1,125

2

Unknown

GE

20

$10,000

.06

2

AA

Verizon

30

$5,000

.07

2

AAA

Iomega

6

$1,000

.07

$840

2

Unknown

Cisco

15

$1,000

.055

2

AAA

Wendys

3

$1,000

.085

$1,047

2

Unknown

US Savings Bond

$1,000

None

$500

None

AAA

What are the likely ratings for the three unknown bonds?

Why might Wendys and the Gap be selling at a premium? What could have happened since these bonds were issued?

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