Question: Need solutions from Questions 1-4 with the formula and solution workout step by step thanks aluing Bonds Active Investment Grade Bonds for Procter & Gamble
aluing Bonds Active Investment Grade Bonds" for Procter & Gamble Co. Based on this online infor- You go to The Wall Street Journal Online orn the morning of March 31, 2008, and see the following bond quote underthe "Most mation, answer the following questions. Rating Yield Fitch High Low Last Change % Issuer Name Symbol Coupon Maturity PROCTER & PG.HD 5.550% Mar 2037 Aa3/AA-/- 9612495933 96.124-0.245 5825 GAMBLE CO Assignment 1. What is the YTM for this Procter& 4. At the required rate of return of 6.2 per- cent, are you interested in purchasing this bond? If you purchased this Procter &Gamble Co. bond for $961.24 yesterday and the market rate of interest for this bond in- creased to 6.0 percent today, do you have a gain or loss? How much is the gain or Gamble Corporate Bond? 5. 2. What is the coupon yield of this this bond over the next year? 3. If your required rate of return for a bond of this risk-class is 62 percent, what value do you place on this Procter&Gamble Co. bond? loss in dollars
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