Interpreting Bond Quotes

Interpreting Bond Quotes - 17-1Interpreting Bond...

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Unformatted text preview: 17-1Interpreting Bond Quotes•Corporate Bond QuotesLast Last EST EST $ VOLCompany (Ticker) Coupon MaturityPrice Yield Spread UST (000’s)Ford (F) 7.45 July 16, 2031 80.625 9.461 503 30 213,645–Explanations•Issued by Ford Motor Company with a coupon of 7.45%•Maturity is July 16, 2031•The last transaction price was 80.625 percent of par or $806.25, implying an yield to maturity (YTM) of 9.461%•The computed yield spread for the Ford bond is 503 basis points (5.03%), in comparison with the prevailing 17-2Interpreting Bond Quotes•Treasury and Agency Bond Quotes–Notations•“n” = treasury note•“i” = inflation-indexed issue•“p” = treasury note on which nonresident aliens are exempt from withholding taxes on interest–Quotes resemble those used for OTC securities because they contain both bid and ask prices17-3Interpreting Bond Quotes–The QuotationFri. AskRate Mo/Yr Bid Asked Chg. Yld....
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This note was uploaded on 01/24/2012 for the course FIN 4360 taught by Professor Davidbray during the Spring '12 term at Kennesaw.

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Interpreting Bond Quotes - 17-1Interpreting Bond...

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