Question: 1. What is the YTM for this Proctor & Gambles corporate bond? 2. What is the coupon yield of this bond over the next year?

1. What is the YTM for this Proctor & Gambleâ€™s corporate bond?

2. What is the coupon yield of this bond over the next year?

3. If your required rate of return for a bond of this risk-class is 6.2 %, what value do you place on this Proctor & Gamble bond?

4. At this required rate of return of 6.2 % are you interested in purchasing this bond?

5. If you purchased this Proctor & Gamble bond for $961.24 yesterday and the market rate of interest for this bond increased to 6.0 % today, do you have a gain or loss? How much is that gain or loss in dollars?

You open your Wall Street Journal (WSJ) on the morning of February 31, 2008, and see the following bond quote for General Mills, Incorporated. Based on this WSJ information, answer the following questions.

1. What is the YTM for this Proctor & Gambleâ€™s

Company (ticker) Coupon! Maturity! Last Price! High | Low | Change Yield% Proctor & Gamble CO (PG HD) 5.550% | Mar 2037 | 96.124 | 96.124 | 95.933 | -0.245 | 5.825

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