Question
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019. The bonds
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000s) Xenon, Inc. (XIC) 7.000 Jan 15, 2039 94.343 ?? 57,378 Kenny Corp. (KCC) 7.280 Jan 15, 2038 ?? 5.46 48,957 Williams Co. (WICO) ?? Jan 15, 2045 94.895 7.16 43,818 a. What price would you expect to pay for the Kenny Corp. bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the bonds current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Coupon Maturity Xenon, Inc. (XIC) 7.000 Jan 15, 2039 Kenny Corp. (KCC) 7.280 Jan 15, 2038 Williams Co. ?? Jan 15, 2045 (WICO) Last Price 94.343 ?? Last Yield ?? 5.46 EST $ Vol (000's) 57,378 48,957 94.895 7.16 43,818 a. What price would you expect to pay for the Kenny Corp. bond? (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? (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 %Step by Step Solution
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