Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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.
Estimated $
Volume
Company (Ticker)
Xenon, Incorporated (XIC)
Coupon
6.400
Kenny Corporation (KCC)
7.220
Maturity
January 15, 2044
January 15, 2038
Last Price Last Yield
94.303
??
(000s)
??
57,372
6.22
48,951
Williams Company (WICO)
??
January 15, 2040
94.835
7.04
43,812
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
%
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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) Coupon 6.400 Kenny Corporation (KCC) 7.220 Maturity January 15, 2044 January 15, 2038 Last Price Last Yield 94.303 ?? (000s) ?? 57,372 6.22 48,951 Williams Company (WICO) ?? January 15, 2040 94.835 7.04 43,812 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 %
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