What is the coupon yield of the bond over the next year

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Reference no: EM132544603

You open your Wall Street Journal (WSJ) on the morning of February 31, 2008, and see the following bond quote for General Mills, Incorporated. Based on this WSJ information, answer the following questions.

Company (ticker)

Coupon 5.550%

Maturity Mar 2037

Last Price

High 96.124

Low 96.124

Change 95.933

Yield % -0.245

Proctor & Gamble CO (PG.HD) 5.825

Assignment

Question 1. What is the YTM for this Proctor & Gamble's corporate bond?

Question 2. What is the coupon yield of this bond over the next year?

Question 3. If your required rate of return for a bond of this risk-class is 6.2 %, what value do you place on this Proctor & Gamble bond?

Question 4. At this required rate of return of 6.2 % are you interested in purchasing this bond?

Question 5. If you purchased this Proctor & Gamble bond for $961.24 yesterday and the market rate of interest for this bond increased to 6.0 % today, do you have a gain or loss? How much is that gain or loss in dollars?

Reference no: EM132544603

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