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
Related questions
Question
| You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019. The bonds have a par value of $2,000 and semiannual coupons. |
| Company (Ticker) |
Coupon | Maturity | Last Price |
Last Yield |
EST $ Vol (000’s) |
| Xenon, Inc. (XIC) | 6.600 | Jan 15, 2035 | 94.303 | ?? | 57,374 |
| Kenny Corp. (KCC) | 7.240 | Jan 15, 2034 | ?? | 5.38 | 48,953 |
| Williams Co. (WICO) | ?? | Jan 15, 2041 | 94.855 | 7.08 | 43,814 |
| a. |
What price would you expect to pay for the Kenny Corp. bond? (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? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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