Question: Calculate YTM ( yield to maturity) by using the data given, and also estimate the bond price one year from now you will analyze one

Calculate YTM ( yield to maturity) by using the data given, and also estimate the bond price one year from now

you will analyze one of the firms outstanding bonds. Firstly, calculate the credit spread of this bond, using the yield onTreasury bonds of comparable duration. You will need to compute the rate of return that investors currently require for holding this bond. To simplify your calculations, assume that the last coupon payment has just been made. Estimate the bonds price one year from now (assume that interest rates remain constant), and provide commentary. Finally, provide a credit rating for the firms bonds.

Current price at 111.70

Issues Price 99.92

maturity date at 2026 - 6 year from now

coupun rate at 3.6%

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