On January 10 th , 2023, Company XYZ issued 10-year maturity bonds that were associate with default
Question:
On January 10th, 2023, Company XYZ issued 10-year maturity bonds that were associate with default spread 1.75%. Company XYZ was able to sell those bonds for the price equal to the face value, i.e., $1,000.
A. What was the coupon rate for those bonds?
https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2023
B. Between January 10th and today, the default spread for company XYZ 10-year bonds decreased from 1.75% to 1.65%. What is the yield to maturity for those bonds as of today, 3/02/2023?
C. Today, the price of the bonds is equal to $1,000. Underline one of the options and explain why.
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson