Calculate current price of berkshire hathaway finance bond

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Reference no: EM13333629

Calculate the current price of the Berkshire Hathaway Finance bond that matures in 2018. What does the spread say about its risk relative to the comparable maturity Treasury? How much of the price is due to the coupon payment?

Issuer	Coupon (%)	Maturity	Current spread
Barclays Bank	7.625	Nov. 21, '22	471
International Lease Finance	5.875	Aug. 15, '22	290
Berkshire Hathaway Finance	1.6	May 15, '18	-22
General Electric	2.7	Oct. 9, '22	52

Treasurys	Yield%
1-Year Note	0.104
5-Year Note	1.289
7-Year Note	1.874
10-Year Note	2.501
30-Year Bond	3.613

Reference no: EM13333629

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