Question
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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