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) a. Price b. Current yield Coupon 6.700 7.250 ?? $ Maturity January 15, 2044 January 15, 2038 January 15, 2040 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. 1,291.19 11.23 % Last Price Last Yield 94.339 ?? ?? 6.28 94.865 7.10 Estimated $ Volume (000s) 57,375 48,954 43,815
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) a. Price b. Current yield Coupon 6.700 7.250 ?? $ Maturity January 15, 2044 January 15, 2038 January 15, 2040 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. 1,291.19 11.23 % Last Price Last Yield 94.339 ?? ?? 6.28 94.865 7.10 Estimated $ Volume (000s) 57,375 48,954 43,815
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...
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Question
![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)
a. Price
b. Current yield
Coupon
6.700
7.250
??
$
Maturity
January 15, 2044
January 15, 2038
January 15, 2040
1,291.19
11.23 %
Last Price Last Yield
94.339
??
94.865
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.
??
6.28
7.10
Estimated $
Volume
(000s)
57,375
48,954
43,815](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40852b75-c577-47e7-9dee-931d83532082%2F53d5a1bd-59f8-4ad9-b2d9-5b4c6d1f7a5d%2F3sk84mb_processed.png&w=3840&q=75)
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.
Company (Ticker)
Xenon, Incorporated (XIC)
Kenny Corporation (KCC)
Williams Company (WICO)
a. Price
b. Current yield
Coupon
6.700
7.250
??
$
Maturity
January 15, 2044
January 15, 2038
January 15, 2040
1,291.19
11.23 %
Last Price Last Yield
94.339
??
94.865
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.
??
6.28
7.10
Estimated $
Volume
(000s)
57,375
48,954
43,815
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