Question: Refer to the five bonds appearing in Figure. a. What is the coupon rate and year of maturity for each bond? b. How much would

Refer to the five bonds appearing in Figure.

a. What is the coupon rate and year of maturity for each bond?
b. How much would you have had to pay to buy one Bank One bond at the closing trade?
c. Why is the current yield on the Time Warner bond higher than the yield on the other fourbonds?

LAST LAST EST EST S VOL 000's COMPANY (TICKER COUPON MATURITY PRICE YIELD SPREAD UST Time Warner (TWX) Telefonica Europe (TELEFO) Merrill Lynch (MER) Bank One (ONE) Citigroup (C) 7.700 May 01, 2032 .78 7.18464 30 39,997 7.750 Sep 15, 2010 435 .226 26 5 39,834 3.000 Apr 30, 2007 97.7253.822 73 39,574 5.250 Jan 30, 2013 96.679 5.73890 39,221 6.500 Jan 18, 2011 0592 5.13929 10 39,183

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