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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 bond'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 all bonds have the same default premium. Fill in the value of The Blue Co.'s bonds. Company Stay Corp. Northern Inc. Acme Corp. Ashpool Inc. The Blue Co. Coupon Maturity 8.25% 01-01-2026 5.80% 01-01-2021 8.98% 01-01-2026 01-01-2046 9.63% 4.13% 01-01-2021 $90.98 Which bond is trading at a premium? O Ashpool Inc. O Stay Corp. The Blue Co. Last Price Acme Corp. $97.87 $99.22 $104.07 $88.14 If you were to calculate the yield on a security with a 10-year US Treasury security, the yield will be equal to 2.17% Last Yield 8.57% 5.98% 8.37% 10.98% 6.26% EST Spread UST (Years) EST Volume (1000s) 2.37% 10 0.58% 5 2.17% 10 4.03% 30 0.86% 5 59,725 52,930 46,932 45,120 43,960

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 bond'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 all bonds have the same default premium. Fill in the value of The Blue Co.'s bonds. Company Stay Corp. Northern Inc. Acme Corp. Ashpool Inc. The Blue Co. Coupon Maturity 8.25% 01-01-2026 5.80% 01-01-2021 8.98% 01-01-2026 01-01-2046 9.63% 4.13% 01-01-2021 $90.98 Which bond is trading at a premium? O Ashpool Inc. O Stay Corp. The Blue Co. Last Price Acme Corp. $97.87 $99.22 $104.07 $88.14 If you were to calculate the yield on a security with a 10-year US Treasury security, the yield will be equal to 2.17% Last Yield 8.57% 5.98% 8.37% 10.98% 6.26% EST Spread UST (Years) EST Volume (1000s) 2.37% 10 0.58% 5 2.17% 10 4.03% 30 0.86% 5 59,725 52,930 46,932 45,120 43,960

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 9P
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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 bond'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 all bonds have the same default premium. Fill in the value of The Blue Co.'s bonds. Company Stay Corp. Northern Inc. Acme Corp. Ashpool Inc. The Blue Co. Coupon Maturity 8.25% 01-01-2026 5.80% 01-01-2021 8.98% 01-01-2026 9.63% 01-01-2046 4.13% 01-01-2021 $90.98 Which bond is trading at a premium? O Ashpool Inc. Stay Corp. The Blue Co. Last Price O Acme Corp. $97.87 $99.22 $104.07 $88.14 Last Yield If you were to calculate the yield on a security with a 10-year US Treasury security, the yield will be equal to 2.17% 8.57% 5.98% 8.37% 10.98% 6.26% EST Spread UST (Years) EST Volume (1000s) 2.37% 10 0.58% 5 2.17% 10 4.03% 30 0.86% 5 59,725 52,930 46,932 45,120 43,960
Transcribed Image Text: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 bond'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 all bonds have the same default premium. Fill in the value of The Blue Co.'s bonds. Company Stay Corp. Northern Inc. Acme Corp. Ashpool Inc. The Blue Co. Coupon Maturity 8.25% 01-01-2026 5.80% 01-01-2021 8.98% 01-01-2026 9.63% 01-01-2046 4.13% 01-01-2021 $90.98 Which bond is trading at a premium? O Ashpool Inc. Stay Corp. The Blue Co. Last Price O Acme Corp. $97.87 $99.22 $104.07 $88.14 Last Yield If you were to calculate the yield on a security with a 10-year US Treasury security, the yield will be equal to 2.17% 8.57% 5.98% 8.37% 10.98% 6.26% EST Spread UST (Years) EST Volume (1000s) 2.37% 10 0.58% 5 2.17% 10 4.03% 30 0.86% 5 59,725 52,930 46,932 45,120 43,960
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