Given the following information, why is one bond’s yield higher than the other’s? Which bond is riskier? Why? Please also indicate whether each bond is traded at par, discount, or premium and explain why. Issuer Name Coupon Maturity Rating Moody's/S&P/ Fitch Yield % GENERAL MOTORS 7.000% Nov 2025 Ba1/BB+/BB+ 6.313 GENERAL MOTORS 8.000% Nov 2031 Ba1/BB+/BB+ 6.838

Given the following information, why is one bond’s yield higher than the other’s? Which bond is riskier? Why? Please also indicate whether each bond is traded at par, discount, or premium and explain why. Issuer Name Coupon Maturity Rating Moody's/S&P/ Fitch Yield % GENERAL MOTORS 7.000% Nov 2025 Ba1/BB+/BB+ 6.313 GENERAL MOTORS 8.000% Nov 2031 Ba1/BB+/BB+ 6.838

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 8FPE: Describe and differentiate between a bonds (a) current yield and (b) yield to maturity. Why are...

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The following information is regarding outstanding bonds issued by Midas Corp. Coupon (%) Maturity Yield to Maturity (%) Fitch Ratings 6.75 2029 3.85 4.95 2044 4.32 a. Discuss the relation among the coupon rate, price, and yield for the bond maturing in 2029. Price 130.50 115.75 A A
Refer to the bond listing table below to determine the coupon rate and maturity of a bond issued by Citigroup. Bond Listing from Wall Street Journal Online 1 2 3 4 5 6 7 8 9 10 Issuer Name Symbol Coupon Maturity Rating Moody's/S&P/ Fitch High Low Last Change Yield % CITIGROUP C.HRY 8.500% May 2019 A3/A/A+ 119.268 116.615 117.733 0.448 5.940 GENERAL ELECTRIC CAPITAL GE.HMX 5.500% Jan 2020 Aa2/AA+/−− 105.307 102.374 103.097 −0.028 5.090 KRAFT FOODS KFT.GX 5.375% Feb 2020 Baa2/BBB−/BBB− 106.081 101.999 103.411 0.687 4.930 BANK OF AMERICA BAC.ICB 7.625% Jun 2019 A2/A/A+ 113.172 111.839 112.847 0.283 5.786 ANHEUSER- BUSCH BUD.ID 5.375% Jan 2020 Baa2/BBB+/−− 104.693 104.061 104.526 −0.466 4.784 COMCAST CORP CMCD.GC 5.150% Mar 2020 Baa1/BBB+/BBB+ 104.832…
The table below gives you some information with respect to bonds. Calculate the yield-to-maturity for all these bonds. Assume you hold till maturity what would you pick? Company Settlement Price Maturity Coupon YTM Morgan Stanley 2/10/2023 100.85 2/25/2023 3.75 ? Fidelity 2/10/2023 99.839 3/01/2023 0.375 ? Caterpillar 2/10/2023 100.00 3/01/2023 2.625 ? NextEra Energy 2/10/2023 99.889 3/01/2023 0.650 ? BNP Paribas 2/10/2023 100.08 3/03/2023 3.250 ?
(a) On October 31, 2021, you find the following bond quote for Global Own, Inc. Answer the following questions using the information from the available sources. COMPANY COUPON MATURITY LAST PRICE HIGH LOW YIELD % Global Own, Inc. 5.55% November 2050 961.24 961.24 959.33 5.825 Questions (i) Calculate the YTM for this corporate bond issued by Global Own, Inc. (ii) Calculate this bond’s coupon yield over the next year. (iii) If your required rate of return for a bond of this risk class is 6.2%, calculate the value you place on this Global Own bond. (iv) Explain if you would be interested in purchasing this bond at the required return of 6.2%. (b) Explain the provisions are available to protect a preferred stockholder.
On 31st March 2016 you saw the following information about bonds. Name of Security Face Value Maturity Date Coupon Rate Coupon Date(s) Zero Coupon 10,000 31st March 2026 N.A. N.A. t-Bill 1,00,000 24th June 2016 N.A. N.A. 10.71%GOTT 2026 100 31st March 2026 10.71 31st March 10%GOTT 2021 100 31st March 2021 10 31st March & 31st October 1A) If the 10-year yield is 7.5%. What price the ZERO Coupon-Bond would fetch on 31st March 2016
[Related to the Apply the Concept: "How to Follow the Bond Market: Reading the Bond Tables ] Consider the following information on two U.S. Treasury bonds Maturity July 31, 2024 Coupon 1.625 July 31, 2024 2.000 Briefly explain how two securities that have the same yield to maturity can have different asked prices OA. Bond A has a low coupon rate and a lower price. Bond B has a higher coupon rate and a higher price. Because of the bond price formula, if coupon rates rise, the yield will fall, which requires prices to fall to keep the yield the same. If both bonds have the same risk profile, the law of one price brings bond yields to the same level Bond A Bond B Bid 101.8984 103.4141 Asked 101.9141 103.4297 Chg 0:5000 0.5000 Asked yield 1.151 1.151 OB. Bond A has a low coupon rate and a lower price. Bond B has a higher coupon rate and a higher price, Because of the bond price formula, if coupon rates fall, the yield will rise, which requires prices to rise to keep the yield the same. If…
Which of the following is the correct ranking for the bond price? Bond Coupon Rate Maturity (years) YTM A 6% 8 6.5% B 6% 8 7% C 7% 7 6.5% A > B > C B > C > A C > A > B
Refer to the bond listing table below to determine the current bond yield for BAC.IOP. Bond Listing from Wall Street Journal Online 1 2 3 4 5 6 7 8 9 10 Issuer Name Symbol Coupon Maturity Rating Moody's/S&P/ Fitch High Low Last Change Yield % CITIGROUP C.HRY 8.500% May 2019 A3/A/A+ 119.268 116.615 117.733 0.448 5.940 GENERAL ELECTRIC CAPITAL GE.HMX 5.500% Jan 2020 Aa2/AA+/−− 105.307 102.374 103.097 −0.028 5.090 KRAFT FOODS KFT.GX 5.375% Feb 2020 Baa2/BBB−/BBB− 106.081 101.999 103.411 0.687 4.930 BANK OF AMERICA BAC.ICB 7.625% Jun 2019 A2/A/A+ 113.172 111.839 112.847 0.283 5.786 ANHEUSER- BUSCH BUD.ID 5.375% Jan 2020 Baa2/BBB+/−− 104.693 104.061 104.526 −0.466 4.784 COMCAST CORP CMCD.GC 5.150% Mar 2020 Baa1/BBB+/BBB+ 104.832 100.923 101.225 0.441…
Which of the following is the correct ranking for the bond price? Bond Coupon rate Maturity YTM A 6% 8 6.5% B 6% 8 7% C 7% 7 6.5% 1.A > B > C 2.B > C > A 3.C > A > B Please answer fast I give you upvote.
Which of the following is the correct ranking for the bond price? Bond YTM Maturity (years) Coupon rate A 6% 6 5% B 6% 6 5.5% C 5% 6 5.5% A<B<C B<A<C C<B<A
The following Bond Data is provided on the FINRA website: Suppose Today's date is 07/11/2023 • Bond Maturity Date: 07/11/2031 Today's Bond Price: $81.95 Bond PAR value: $100 Bond Coupon Rate: 1.8% (coupons are paid semiannually). What is the computed yield to maturity of this Bond? Enter your answer in the format: 0.1234 Hint: Gather N, PV, PMT, FV and compute I/Y; Assume there are 365 days in a year.
Problem: You are given the following data for two bonds with semiannual payments (A and B) Bond Settlement Date B 2/15/2020 2/15/2020 Maturity Date Coupon rate 2/15/2040 2/15/2040 4% 8% Similar bonds with 20 year to maturity sell for 9% coupon rates in the market. a) Calculate the bond value for bond A and B b) Calculate the YTM for bond A and B Bond Valuation Settlement Date 2/15/2020 2/15/2020 Maturity Date Coupon rate Required return Redemption Value Frequency Basis Calculate the PV of the bond in U.S. S 2/15/2040 2/15/2040 8% 4% 4.50% 4.50% 100 100 2 a) Use the Price Function B) Use the Yield Function

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Issuer Name	Coupon	Maturity	Rating Moody's/S&P/ Fitch	Yield %
GENERAL MOTORS	7.000%	Nov 2025	Ba1/BB+/BB+	6.313
GENERAL MOTORS	8.000%	Nov 2031	Ba1/BB+/BB+	6.838