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What is the yield to call on the PG 2049 bond? YTC= d. Kimberly-Clark Corp. (KMB) has a 5%2049 bond issue with a YTM of

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What is the yield to call on the PG 2049 bond? YTC= d. Kimberly-Clark Corp. (KMB) has a 5%2049 bond issue with a YTM of 6.0%. The PG and KMB bonds are identical in every way, including the Moody's and S\&P ratings, maturity date, and the fact that the respective companies can call them on November 1 , 2024 for 102.5. (The bonds were issued on different dates, thus their coupon rates and current market prices are the only difference.) What is the price for the 2049 KMB bond? Price e. Explain the difference in the YTM for the 2049 PG and KMB bonds. Which bond provides the more accurate estimate of the rate required in the marketplace for PG at this time? (Hint: the bonds are of similar risk and should have a similar rate; however, they do not. Why is that?) f. KMB has just issued a 5-year semi-annual bond with a 6% coupon, a par value of 100 and a 5\% YTM. Which KMB bond (5 year or 27 year) has the higher price risk and which one has the higher re-investment rate risk? Highlight either 5 Year or 27 Year below. What is the yield to call on the PG 2049 bond? YTC= d. Kimberly-Clark Corp. (KMB) has a 5%2049 bond issue with a YTM of 6.0%. The PG and KMB bonds are identical in every way, including the Moody's and S\&P ratings, maturity date, and the fact that the respective companies can call them on November 1 , 2024 for 102.5. (The bonds were issued on different dates, thus their coupon rates and current market prices are the only difference.) What is the price for the 2049 KMB bond? Price e. Explain the difference in the YTM for the 2049 PG and KMB bonds. Which bond provides the more accurate estimate of the rate required in the marketplace for PG at this time? (Hint: the bonds are of similar risk and should have a similar rate; however, they do not. Why is that?) f. KMB has just issued a 5-year semi-annual bond with a 6% coupon, a par value of 100 and a 5\% YTM. Which KMB bond (5 year or 27 year) has the higher price risk and which one has the higher re-investment rate risk? Highlight either 5 Year or 27 Year below

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