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. E Company (Ticker) Coupon Xenon, Incorporated (XIC) 7.200 Maturity January 15, 2039 Last Price Last Yield 94.399 ?? Kenny Corporation (KCC) 7.300 January 15, 2033 ?? 6.38 Williams Company (WICO) ?? January 15, 2035 94.915 7.20

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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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)
Coupon
Xenon, Incorporated (XIC)
7.200
Maturity
January 15, 2039
Last Price Last Yield
Kenny Corporation (KCC)
7.300
January 15, 2033
94.399
??
??
6.38
Williams Company (WICO)
??
January 15, 2035
94.915
7.20
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
%
E
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) Coupon Xenon, Incorporated (XIC) 7.200 Maturity January 15, 2039 Last Price Last Yield Kenny Corporation (KCC) 7.300 January 15, 2033 94.399 ?? ?? 6.38 Williams Company (WICO) ?? January 15, 2035 94.915 7.20 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 % E
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