3 To calculate the number of years until maturity, assume that it is currently January 15, 2022. All of the bonds have a $2,000 par value and pay semiannual coupons. Estimated $ Volume Company (Ticker) Xenon, Incorporated (XIC) Coupon 5.400 Maturity January 15, 2034 Last Price Last Yield (000s) Kenny Corporation (KCC) 4.125 January 15, 2029 92.685 ?? ?? 57,362 3.84 48,941 Williams Company (WICO) ?? January 15, 2031 104.310 4.12 43,802 a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Price b. Current yield %
3 To calculate the number of years until maturity, assume that it is currently January 15, 2022. All of the bonds have a $2,000 par value and pay semiannual coupons. Estimated $ Volume Company (Ticker) Xenon, Incorporated (XIC) Coupon 5.400 Maturity January 15, 2034 Last Price Last Yield (000s) Kenny Corporation (KCC) 4.125 January 15, 2029 92.685 ?? ?? 57,362 3.84 48,941 Williams Company (WICO) ?? January 15, 2031 104.310 4.12 43,802 a. What price would you expect to pay for the Kenny Corporation bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the bond's current yield? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Price b. Current yield %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:3
To calculate the number of years until maturity, assume that it is currently January 15, 2022. All of the bonds have a $2,000 par value
and pay semiannual coupons.
Estimated $
Volume
Company (Ticker)
Xenon, Incorporated (XIC)
Coupon
5.400
Maturity
January 15, 2034
Last Price Last Yield
(000s)
Kenny Corporation (KCC)
4.125
January 15, 2029
92.685
??
??
57,362
3.84
48,941
Williams Company (WICO)
??
January 15, 2031
104.310
4.12
43,802
a. What price would you expect to pay for the Kenny Corporation bond?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
b. What is the bond's current yield?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
a. Price
b. Current yield
%
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