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Assume that Kendal Corp. has an outstanding bond issue with a par value of $1,000 and a current market price of $1,042.70 per bond. The
Assume that Kendal Corp. has an outstanding bond issue with a par value of $1,000 and a current market price of $1,042.70 per bond. The bond has nine years remaining and a coupon rate of 6 percent. (Use Excel to answer this question. Enter your answer as a percent rounded to 2 decimal places.) a. Find the current yield to maturity for the Kendal Corp. bond. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Yield to maturity % b. If the bond trades at a yield spread of 2.30 percent above comparable U.S. Treasury notes, what must the current yield on Treasury notes be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Treasury yield c. If the Kendal bond has a make-whole call premium of 140 basis points above the U.S. Treasury rate, what is the make-whole call premium? (Do not round intermediate calculations. Enter the make-whole yield answer as a percent rounded to 2 decimal places. Enter the make-whole price answer in dollars rounded to 2 decimal places.) Make-whole yield Make-whole price Assume that Kendal Corp. has an outstanding bond issue with a par value of $1,000 and a current market price of $1,042.70 per bond. The bond has nine years remaining and a coupon rate of 6 percent. (Use Excel to answer this question. Enter your answer as a percent rounded to 2 decimal places.) a. Find the current yield to maturity for the Kendal Corp. bond. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Yield to maturity % b. If the bond trades at a yield spread of 2.30 percent above comparable U.S. Treasury notes, what must the current yield on Treasury notes be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Treasury yield c. If the Kendal bond has a make-whole call premium of 140 basis points above the U.S. Treasury rate, what is the make-whole call premium? (Do not round intermediate calculations. Enter the make-whole yield answer as a percent rounded to 2 decimal places. Enter the make-whole price answer in dollars rounded to 2 decimal places.) Make-whole yield Make-whole price
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