Question: Exxon Mobil Cor. (rated AAA by S&P) issues an 8-year $1000 par value bond that pays semi-annual coupons. Coupon rate is 4.5%. The bond is

Exxon Mobil Cor. (rated AAA by S&P) issues an 8-year $1000 par value bond that pays semi-annual coupons. Coupon rate is 4.5%. The bond is priced at $1116.59. Find the YTM in EAR At the same time(as in question 3), Valero Corp. (rated BBB by S&P) issues a similar bond with same maturity, par value, and coupon rate.

However, the coupon frequency is quarterly. The BBB-AAA spread is 2.5%. Using the answer in Question 3 and the spread find out the YTM of this bond.

Question 5. Find the bond price of Valero Corp.

Use the information in question 3 and question 4

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