Wednesday, February 29, 2012

Please help with this finance 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) 6.750 Sep 01, 2011 108.198 5.468

Sara Lee (SLE) 3.875 Jun 15, 2013 89.700 5.235

Wells Fargo (WFC) 7.250 Aug 24, 2005 109.645 2.191

General Motors (GM) 7.125 Jul 15, 2013 101.201 6.952

Lincoln National (LNC) 6.200 Dec 15, 2011 105.903 5.307

a. Explain why the International Paper bond is selling at a premium but the

Sara Lee is selling at a discount.

b. Why is the yield (yield to maturity) on the General Motors bond so much

higher than the yield on the Sara Lee bond?

c. 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?Please help with this finance problem?
you realize there's an entire homework help section, right?
I wish I new answers like this - I could probably make millions in the stock market - That is after it is done with the big crash and starts to go back up.Please help with this finance problem?
stop spending soo much

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