The following bond quotations are taken from the Wall Street Journal dated Friday, September 5, 2003.
|International Paper||6.75||Sep. 1, 2011||108.198||5.468|
|Lincoln National||7.125||Dec. 15, 2011||105.903||5.307|
a.) Explain why the International Paper bond is selling at a premimum but Sara Lee is selling at a discount
b.) Why is the yeild (yield to maturity) on the General Motors bond so much higher than the yield on the Sara Lee bond?