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XYZ is looking at investing in the bond market. a) Complete the table below b) the company suspects some mispricing going on in the Technology

XYZ is looking at investing in the bond market.

a) Complete the table below

image text in transcribed

b) the company suspects some mispricing going on in the Technology sector bonds, review the following three companies to identify one case where the price seems incorrect.

image text in transcribed

. Issuer Time to Rating Coupon (%) Price per YTM (%) maturity $100 of Face (years) Value Bonds Inc. 0.5 4% $99 ? (6.06%) Are Ltd. BBB $100 ? (7%) Forever WII BB 7.4% ? ($98.91) 8% All coupons and YTMs are quoted (and paid) per annum (p.a.) with semi-annually compounding. For the missing YTM questions, please provide answers with semi-annual compounding. 1.5 7% Issuer Rating Coupon (%) | YTM (%) Time to maturity (years) Price per $100 of Face Value $1084.02 $998.28 $947.58 Appill Macrosift Dill Computers ww A7% B 5% BBB6 % 4.0% 4.9% 8.0%

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