Question: 14. Perusing the corporate bond quotations, you write down some summary information: LAST MAT. PRICE LASTEST EST $VOL YIELD SPREAD UST (000S) 10 years 99.270

14. Perusing the corporate bond quotations, you write down some summary

14. Perusing the corporate bond quotations, you write down some summary information: LAST MAT. PRICE LASTEST EST $VOL YIELD SPREAD UST (000S) 10 years 99.270 4.649 47 10 66,830 COMPANY (TICKER) COUPON Wal-Mart Stores WMT 4.550 Wal-Mart Stores WMT 4.125 Liberty Media 5.700 Ford Motor Credit F 7.250 8 years 99.554 4.200 2 10 50,320 u 10 years 102.750 5.314 112 10 26,045 8 years 107.407 6.012 183 10 22,863 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

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