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) Coupon rate Coupon 6.800 7.260 72 % Maturity January 15, 2043 January 15, 2037 January 15, 2039 Last Price Last Yield 27 94.351 27 94.875 6.30 7.12 Estimated $ Volume What is the coupon rate for the Williams Company bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. (000) 57,376 48,955 43,816
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) Coupon rate Coupon 6.800 7.260 72 % Maturity January 15, 2043 January 15, 2037 January 15, 2039 Last Price Last Yield 27 94.351 27 94.875 6.30 7.12 Estimated $ Volume What is the coupon rate for the Williams Company bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. (000) 57,376 48,955 43,816
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.
Below is a table detailing the bond quotes:
| Company (Ticker) | Coupon | Maturity | Last Price | Last Yield | Estimated % Volume ('000s) |
|---------------------------|--------|-------------------|------------|------------|---------------------------|
| Xenon, Incorporated (XIC) | 6.800 | January 15, 2043 | 94.251 | 7.20 | 57,376 |
| Kenny Corporation (KCC) | 7.260 | January 15, 2037 | 97.000 | 6.30 | 48,955 |
| Williams Company (WICO) | ? | January 15, 2039 | 94.875 | 7.12 | 43,816 |
**Question:**
What is the coupon rate for the Williams Company bond?
**Note:** Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
**Coupon rate:**
| Coupon rate | % |
|-------------|--------|
| | |
**Explanation of the Table:**
- **Company (Ticker):** The name and ticker symbol of the company issuing the bond.
- **Coupon:** The interest rate the bond pays annually, expressed as a percentage of the face value.
- **Maturity:** The date when the bond will mature and the principal amount is repaid to the bondholder.
- **Last Price:** The most recent selling price of the bond, expressed as a percentage of the bond's face value.
- **Last Yield:** The yield (interest rate) based on the last price.
- **Estimated % Volume ('000s):** The estimated trading volume of the bond in thousands of dollars.
This information helps investors make informed decisions about purchasing corporate bonds based on their yields and maturity dates.
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