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## Finance

 Basic Finance Corporate Finance Financial Management Financial Econometrics Portfolio Management Risk Management Public Finance Business Law & Ethics

problem: The following bond quotations are taken from the Wall Street Journal dated Friday, September 5, 2003:

 Company Coupon Maturity Last Price Yield International Paper (IP) 6.75 01- Sep- 2011 108.2 5.468 Sara Lee (SLE) 3.875 15-Jun-2013 89.7 5.235 Wells Fargo (WFC) 7.25 24-Aug-05 101.2 6.952 General Motors (GM) 7.125 15-Jul-13 109.65 2.191 Lincoln National (LNC) 6.2 15-Dec-11 105.9 5.307

[A]    Describe why the International Paper bond is selling at a premium but the Sara Lee is selling at a discount.

[B]    describe why is the yield [yield to maturity] on the General Motors bond so much higher than the yield on the Sara Lee bond?

[C]    describe why is the yield [yield to maturity] on the Wells Fargo Bank bond so much less than the yield on the Lincoln National Corp. bond?

Basic Finance, Finance

• Category:- Basic Finance
• Reference No.:- M916287

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