The following bond list is from the business section of a newspaper on January 1, 2016....
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The following bond list is from the business section of a newspaper on January 1, 2016. Notice 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 bond's spread above the relevant US Treasury benchmark, given 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. Prices are stated relative to a par value of $100. Fill in the nominal YTM for Pickman Inc.'s bonds. Company Schubert Inc. Chapman Inc. Rust Inc. Murphy & Co. Pickman Inc. Last Maturity Price Last Yield 01-01-2026 $82.25 11.11% 9.63% 01-01-2046 $83.20 11.65% 4.50% 01-01-2021 $95.18 5.62% 5.38% 01-01-2021 $101.02 5.14% 7.75% 01-01-2026 $93.86 10.15% 12.58% 11.65% 12.05% Coupon 8.13% EST Spread Which bond is trading at a premium? Murphy & Co. Schubert Inc. Pickman Inc. Rust Inc. 6.20 7.15 1.37 0.89 3.77 UST (Years) 10 30 5 5 10 EST Volume (1000s) If Chapman Inc. wants to issue new 30-year bonds today, what coupon rate would the bonds have to pay to be issued at par? 72,070 65,275 59,277 57,465 56,305 The following bond list is from the business section of a newspaper on January 1, 2016. Notice 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 bond's spread above the relevant US Treasury benchmark, given 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. Prices are stated relative to a par value of $100. Fill in the nominal YTM for Pickman Inc.'s bonds. Company Schubert Inc. Chapman Inc. Rust Inc. Murphy & Co. Pickman Inc. Last Maturity Price Last Yield 01-01-2026 $82.25 11.11% 9.63% 01-01-2046 $83.20 11.65% 4.50% 01-01-2021 $95.18 5.62% 5.38% 01-01-2021 $101.02 5.14% 7.75% 01-01-2026 $93.86 10.15% 12.58% 11.65% 12.05% Coupon 8.13% EST Spread Which bond is trading at a premium? Murphy & Co. Schubert Inc. Pickman Inc. Rust Inc. 6.20 7.15 1.37 0.89 3.77 UST (Years) 10 30 5 5 10 EST Volume (1000s) If Chapman Inc. wants to issue new 30-year bonds today, what coupon rate would the bonds have to pay to be issued at par? 72,070 65,275 59,277 57,465 56,305
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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