Question: 13. Bond listings and yield spreads Aa Aa E The following bond list is from the business section of a newspaper on January 1, 2012.

13. Bond listings and yield spreads Aa Aa E The following bond list is from the business section of a newspaper on January

13. Bond listings and yield spreads Aa Aa E The following bond list is from the business section of a newspaper on January 1, 2012. Notice that each bond shown matures on January 1 in 5, 10, or 30 years. Each bond shown pays a semiannual coupon-the coupon rate is in the column labelled Coupon. The Last Price and Yield to Maturity columns indicate each bond's price and YTM at the end of trading. EST Spread indicates the bond's spread above the relevant Government of Canada benchmark bond, expressed as a percentage. GCT indicates the maturity of the relevant Government of Canada benchmark bond for each bond listed. Notice also that prices are stated relative to a par value of $100. Assume all bonds have the same default premium. Fill in the nominal YTM for Pickman Inc.'s bonds. GCT (Years) Company Schubert Inc. Chapman Inc. Rust Inc. Murphy & Co. Pickman Inc. Coupon 8.13% 9.63% 4.50% 5.38% 7.75% Maturity 01-01-2022 01-01-2042 01-01-2017 01-01-2017 01-01-2022 Last Price $82.25 $83.20 $95.18 $101.02 $93.86 Yield to Maturity 11.11% 11.65% 5.62% 5.14% EST Spread 6.20 7.15 1.37 0.89 3.77 If Chapman Inc. wants to issue new 30-year bonds today, what coupon rate would the bonds have to pay to be issued at par? O 12.58% 11.65% 12.05% 10.15% Which bond is trading at a premium? Chapman Inc. Pickman Inc. Murphy & Co. Schubert Inc. The following table represents a bond list from a financial reporting service website: Bond Yield Spreads Medium Term 5 year Yield (%) Government of Canada 2.60 CIBC 3.35 The spread on the CIBC bond is

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