Question: need helpd with this please 10. Bond listings and yield spreads The following bond list is from the business section of a financial newspaper on
10. Bond listings and yield spreads The following bond list is from the business section of a financial newspaper on January 1, 2016. Assume that each bond shown matures on January 1 in 5, 10, or 30 years. Each bond shown pays a semiannual coupon and the coupon rate is in the column labeled Coupon. The Last Price and Last Yield columns indicate each bond's price and YTM at the end of trading. Est Spread indicates the band's spread above the relevant US Treasury benchmark, expressed as a percentage. UST indicates which US Treasury security maturity is the relevant benchmark for each bond. EST Volume shows the number of bonds traded during the day. Notice also that prices are stated relative to a par value of $100. Assume alt bonds have the same default premium. Fill in the value of Kumatsu Co.'s bonds. Last Yield Company Vandelay Inc. Side Corp Coupon 3.25 5.00 Maturity 01-01-2026 01-01-2021 UST (Years) 10 Last Price $97.87 $99.22 $104.07 8.57% 5.98 8.37% EST Spread 2.37 0.58% 2.17 5 EST Volume (1000) 59,725 52.930 46.932 45,120 43,960 8.98 10 Widget Corp Wayne Inc. Kumatsu Co. 01-01-2026 01-01-2046 01-01-2021 9,636 4.13% 588.14 10.98% 6.26% 4.03 0.36% 30 5 If you were to calculate the yield on a secunity with a 10-year US Treasury security, the yield will be equal to CENGAGE MINDTAP Search the EST Spread 2.37% UST (Years) 10 Ch 07- Assignment - Bonds and Their Valuation Company Coupon Maturity Last Price Vandelay Inc. 8.25% 01-01-2026 $97.87 Side Corp. 5.80% 01-01-2021 599,22 Widget Corp. 8.98% 01-01-2026 $104.07 Wayne Inc. 9.6396 01-01-2046 $88.14 Kumatsu Co. 4.13% 01-01-2021 EST Volume (1000s) 59.725 52,930 5 Last Yield 8.57% 5.98% 8.37% 10.98% 6.26% 0.58 2.17% 10 4.03% 30 46,932 45.120 43,960 0.86% 5 If you were to calculate the yield on a security with a 10-year US Treasury security, the yield will be equal to Which bond is trading at a premium? Wayne Inc. O Widget Corp. Side Corp Kumatsu Co
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