Question: Which bond has the highest yield? Determine the yield to maturity on these bonds using the spread. If dont have a comparable maturity Treasury rate

Which bond has the highest yield?

Determine the yield to maturity on these bonds using the spread.

If dont have a comparable maturity Treasury rate then go up to the next highest, e.g. IBM bond matures in 9 years so use the 10 year Treasury rate.

Once you have the YTM calculate the price for each of the bonds. Which bond has the highest price? Why doesnt the highest price correspond to the lowest yield?

Which bond has the highest yield? Determine the yield to maturity on

Please provide cell reference.

F G H E Current Spread 79 34 par value 100 136 233 80 180 358 43 A B D 1 Issuer Symbol Coupon (> Maturity 2 Comcast CMCSA 3.55 May 1, '27 3 IBM Credit IBM 2.65 Feb. 5, '31 4 Hyundai Capital America* HYNMTR 3 Oct. 30, 30 5 Societe Generale SOCGEN 7.875 Dec. 18, 52 6 Nippon Life Insurance NIPLIF 5 Oct. 18, 32 7 General Electric GE 5 Jan. 21, 49 8 Deutsche Bank AG* DB 7.5 April 30, 49 9 Microsoft MSFT 2.4 Aug. 8,27 10 11 12 13 Treasury COUPON YIELD (%) 14 30-Year Bond 1.875 2.222 15 10-Year Note 1.375 1.926 16 7-Year Note 1.75 1.9 17 5-Year Note 1.5 1.776 18 3-Year Note 1.125 1.532 19 2-Year Note 0.875 1.304 20 1-Year Bill 0 0.852 21 6-Month Bill 0 0.554 22 3-Month Bill 0 0.238 23 1-Month Bill 0 0.045 24 25 F G H E Current Spread 79 34 par value 100 136 233 80 180 358 43 A B D 1 Issuer Symbol Coupon (> Maturity 2 Comcast CMCSA 3.55 May 1, '27 3 IBM Credit IBM 2.65 Feb. 5, '31 4 Hyundai Capital America* HYNMTR 3 Oct. 30, 30 5 Societe Generale SOCGEN 7.875 Dec. 18, 52 6 Nippon Life Insurance NIPLIF 5 Oct. 18, 32 7 General Electric GE 5 Jan. 21, 49 8 Deutsche Bank AG* DB 7.5 April 30, 49 9 Microsoft MSFT 2.4 Aug. 8,27 10 11 12 13 Treasury COUPON YIELD (%) 14 30-Year Bond 1.875 2.222 15 10-Year Note 1.375 1.926 16 7-Year Note 1.75 1.9 17 5-Year Note 1.5 1.776 18 3-Year Note 1.125 1.532 19 2-Year Note 0.875 1.304 20 1-Year Bill 0 0.852 21 6-Month Bill 0 0.554 22 3-Month Bill 0 0.238 23 1-Month Bill 0 0.045 24 25

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Complete the following problems inMicrosoft Excel. Your work must be completed in the attached template. Instructions NAME: To complete the homework assignments in the templates provided: 1. The...

I need an answer for question#16 by the financial calculator If coupons are paid annually, which bond offered the highest yield to maturity? Which had the lowest? Which bonds had the longest and...

The question is extended on this website...

Aa Aa 2. Bonds and their valuation Part 2 Bond valuations and yields: What do they mean, and how do you derive their values? Consider the following case of investment-grade bonds issued by Procter &...

use this figure for the A-C 12- 10 - BBB Figure 6-3 Yields on 10-Year U.S. Government Treasury. AAA, and BBB Corporate Bonds, since 2000 In September 2008, the financial crisis led to a sharp...

You need to use Excel for the calculations (with cells containing formulas) and Word for the Essay questions and the Bloomberg portions. If certain functions in Bloomberg have changed since this exam...

Need to complete 10 homework but now i need 5 homework then after some time 5 homework more. Here it is attachment. Chapter 5 HW Questions [ALL OF THESE MUST BE DONE IN EXCEL] 1. Future value: Chuck...

Callable Yes Coupon Frequency Semiannually Issue Size ($Mil) Maturity Date $1,000 Coupon 0.700% 08/15/2014 Coupon Type Fixed Proctor and Gamble's total amount of debt increased from 31.9% in March...

10. The spread between riskless and risky bonds The text used Figure 6.3 to describe fluctuations in the spreads between riskless rate on 10-year US Treasury bonds and 10-year AAA and BBB corporate...

Locate the treasury bond in figure 6.3 maturing in november 2043. assumes a $1,000 par value. What is its current yield? What is its yield to maturity? What is the bid-ask spread in dollars? Locate...

The successful Clarkson knife-gate valve contains a wafer that is thin and light. Yet, the wafer is so strong it can operate with up to 150 pounds-per-square-inch (psi) of pressure on it, making it...

Refer to Exercise 13.12. A command in the MINITAB regression menu provides output in which R2 and R2(adj) are calculated for all possible subsets of the five independent variables. The printout is...

5. In the figure, QRS is a straight line, _PQR = 90, pQ =x cm, QR = 40 cm and PR = 41 cm. (i) Find the value of x. Find the value of each of the following. (a) sin LPRS (b) cos LPRS (c) tan ZPRQ P....

For this and all future exercises the driver does the typing, while the navigator watches for errorsand helps to plan ahead for the next steps. Drivers and navigators can switch roles as often as...

Write your fourth question and provide an answer based on your analysis.

Suppose we want to put the following data into the appropriate income statement format: Revenues 50000 Expenses Cost of Goods Sold 20000 Research and Development Expenses 10000 Selling, General, and...

=+5 Describe the use of blogging and microblogging in business communication and briefly explain how to adapt the three-step process to blogging