10. Assume it is early 2003 and the following bond quotations appeared in the wall street journal
Conoco Phillips COP 5.900 Oct 15, 2032 95.975 6.200 90 30 88,510
Amerada Hess AHC 7.125 Mar 15, 2033 100.145 7.113 179 30 55,000
a. How much in annual interest payment would an investor in each of these bonds receive?
b. How much would you have to pay to buy one COP bond at the price shown.
c. Why do you think the yield to maturity on the AHC bond is higher than the yield to maturity on the COP bond
1 answer
In the case of Conoco Phillips, 5.90 is the "coupon" interest rate, expressed as a percent of face value. Oct 15, 2032 is the maturity date when principle (face value) is to be repaid. 95.957 is the actual price per $100 face value, and 6.2000 is the equivalent Yield to Maturity. I don't know what the other numbers represent. One might represent a most recent sale.
1 answer