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) Kenny Corporation (KCC) Coupon 5.700 Williams Company (WICO) 7.150 ?? Maturity January 15, 2037 January 15, 2031 Last Price Last Yield 94.219 ?? (000s) ?? 57,365 6.08 48,944 January 15, 2033 94.765. 6.90 43,805 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 $ 2,088 87 6.85%
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) Kenny Corporation (KCC) Coupon 5.700 Williams Company (WICO) 7.150 ?? Maturity January 15, 2037 January 15, 2031 Last Price Last Yield 94.219 ?? (000s) ?? 57,365 6.08 48,944 January 15, 2033 94.765. 6.90 43,805 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 $ 2,088 87 6.85%
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)
Kenny Corporation (KCC)
Coupon
5.700
Williams Company (WICO)
7.150
??
Maturity
January 15, 2037
January 15, 2031
Last Price Last Yield
94.219
??
(000s)
??
57,365
6.08
48,944
January 15, 2033
94.765.
6.90
43,805
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
$
2,088 87
6.85%
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