Perusing the corporate bond quotations, you write down some summary information:

a) Which company is the riskiest? Why?

b) Which bond has the highest default risk? Why?

c) Why would Wal-Mart have two bonds trading at different yields?

d) Compute the current yield for each of the four bonds.

e) Compute yield to maturity for each of the four bonds. (Note: all answers below are in terms of the APR)

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Last Last Fst Est S Vol Company (Ticker) Coupon Maturity Price Yield Spread UST (000's) Wal-Mart Stores WMT 4.550 10 yers 99.270 4.649 47 066,830 Wal-Mart Stores WMT 4.125 8 years 99.554 4.200 2 10 50,320 Liberty Media L 5.700 10 yers 102.750 5.314 112 0 26,045 Ford Motor Credit F 7.250 8 years 107.407 6.012 183 10 22,863