Explain why is the yield yield to maturity on the general, Ask an Expert

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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?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M916287

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