"Perusing the corporate bond quotations, you write down some summary information: Company (Ticker) Coupon...

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Finance

"Perusing the corporate bond quotations, you write down some summary information:

Company (Ticker) Coupon Mat. Last Price Last Yield Est Spread Est UST $Vol (000S)

Wal-Mart Stores

WMT 4.550 10 years 99.270 4.649 47 10 66,830

Wal-Mart Stores

WMT 4.125 8 years 99.554 4.200 2 10 50,320

Liberty Media

L 5.700 10 years 102.750 5.314 112 10 26,045

Ford Motor Credit

F 7.250 8 years 107.407 6.012 183 10 22,863

Which company is the riskiest? Why? Which bond has the highest default risk? Why? Why would Walmart have two bonds trading at different yields? Compute the current yield for each of the four bonds. Compute yield to maturity for each of the four bonds."

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