You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Estimated $ Volume Coupon 6.400 7.220 ?? Maturity January 15, 2044 January 15, 2038 Last Price Last Yield (000s) 94.303 ?? 57,372 ?? 6.22 48,951 January 15, 2040 94.835 7.04 43,812 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.
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Estimated $ Volume Coupon 6.400 7.220 ?? Maturity January 15, 2044 January 15, 2038 Last Price Last Yield (000s) 94.303 ?? 57,372 ?? 6.22 48,951 January 15, 2040 94.835 7.04 43,812 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.
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:You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15,
2022. The bonds have a par value of $2,000 and semiannual coupons.
Estimated $
Volume
Company (Ticker)
Xenon, Incorporated (XIC)
Coupon
6.400
Kenny Corporation (KCC)
7.220
Maturity
January 15, 2044
January 15, 2038
Last Price Last Yield
94.303
??
(000s)
??
57,372
6.22
48,951
Williams Company (WICO)
??
January 15, 2040
94.835
7.04
43,812
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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