You find the following corporate bond quotes. To calculate the number of years until maturity, assume thatit is currently January 15, 2022. The bonds have a par value of $2,000 and semiannual coupons.Estimated $VolumeCompany (Ticker)Xenon, Incorporated (XIC)Kenny Corporation (KCC)Williams Company (WICO)Coupon6.100MaturityJanuary 15, 2041Last PriceLast Yield(0005)7.190??January 15, 2035January 15, 203794.267????57,3696.1648,94894.8056.9843,809What is the coupon rate for the Williams Company bond?Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimalplaces, e.g., 32.16.Coupon rate%

Step 1: Final answer: The coupon rate for the Williams Company bond is approximately 54.90%.

Answered: You find the following corporate bond…

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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2. Calculate the current price of the following bonds. Current date is 01 January 2020 a b C d e f Face value $1,000 $6,000 $5,000 $10,000 $1,000 $2,000 Interest, pa 4% 5% 4.50% 8% 6% 4% Required rate Coupon 5% Annually 6% Nil 6% Semi annual 6.50% Quarterly 8% Semi annual 6% Monthly Maturity 31-Dec-20 1-Jul-21 1-Jul-22 31-Dec-30 31-Dec-40 1-Jul-25
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A 25-year, $1,000 par value bond has a 9.0% annual payment coupon. The bond currently sells for $905. If the yield to maturity remains at its current rate, what will the price be 4 years from now? Do not round your intermediate calculations. a. $828.62 Ob. $987.41 O c. $897.33 Od. $909.45 Oe. $966.73 Not Answered
Consider a $100 face value 10-year bond with 8% semiannual coupons, and redemption value$120. The yield rate convertible semiannually is 6%, and the first coupon is paid on July 1st, 2018. Findthe price on November 15th, 2021.
Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of $1,000, and the current date is April 19, 2022. (000s) Estimated Volume 7.15 Maturity April 19, 2042 Last Price Last Yield 92.843 ?? Company (Ticker) Coupon IOU (IOU) a. What is the yield to maturity of the bond? 85 Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the 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. Yield to maturity b. Current yield % %
None
Suppose Lion Cage Multinational floated 5000 bonds on January 1, 2020 with a par value of 1500 at stated rate of 16%. Currently, the market is selling these bonds at 18%. The bonds are expected to paid back by December 2030 with an interest paid quarterly effective March 1, 2020. What would be the bond price? Group of answer choices No choice given 7,485,006 6,708,900 7,584,000 6,870,050
What is the market price for a bond which has a $1.976m face value, a 2.75% coupon, a 15 May 2045 maturity, that is trading at a yield to maturity of 2.01% p.a. when it is valued on 1 February 2024? a $2,239,823.728 b $2,239,954.08 c $2,239,815.76 d $2,244,558.16
S Suppose the following bond quotes for IOU Corporation appear in the financial page of today's newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2021. Assume semiannual coupon payments. Company (Ticker) IOU (IOU) Coupon 5.7 Maturity April 19, 2043 Last Price 108.96 Last Yield ?? EST volume (000s) 1,827 a. What is the yield to maturity of the bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. YTM b. Current yield % %
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%
D3)
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