Problem 6-31 Bond Yields [LO 2]You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it iscurrently 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)Coupon7.00MaturityJanuary 15, 20417.28??January 15, 2035January 15, 2037Last Price Last Yield94.375??94.895(000s)??6.3457,37848,9577.1643,818What is the yield to maturity for the bond issued by Xenon, Incorporated?Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,e.g., 32.16.Yield to maturity%

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) Coupon Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) 7.00 Maturity January 15, 2041 Last Price Last Yield (000s) 7.28 ?? January 15, 2035 January 15, 2037 94.375 ?? 94.895 ?? 57,378 6.34 48,957 7.16 43,818 What is the yield to maturity for the bond issued by Xenon, Incorporated? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Yield to maturity %

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) Coupon Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) 7.00 Maturity January 15, 2041 Last Price Last Yield (000s) 7.28 ?? January 15, 2035 January 15, 2037 94.375 ?? 94.895 ?? 57,378 6.34 48,957 7.16 43,818 What is the yield to maturity for the bond issued by Xenon, Incorporated? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Yield to maturity %

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter5: Bonds, Bond Valuation, And Interest Rates

Section: Chapter Questions

Problem 24SP

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11 3 N Pont 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. Company (ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Hilliams Company (HICO) Coupon 7.200 7.300 77 Coupon rate Maturity January 15, 2039 January 15, 2033 January 15, 2035 Last Price Last Yield. 94.399 77 94.915 ?? 6.38 7,20 Estimated S Volume (0000) 57,380 48,959 43,820 What 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 decimal places, e.g. 32.16.
D ook 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) Coupon Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) 5.700 7.150 ?? Maturity January 15, 2037 January 15, 2031 January 15, 2033 Last Price Last Yield 94.219 ?? (000s) ?? 57,365 6.08 48,944 94.765 6.90 43,805 What 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 decimal places, e.g., 32.16. nt Coupon rate ences %
Question a The following data relate to a corporate bond which pays coupons semi-annually:Settlement date 01 March 2020Maturity date 31 December 2040Coupon rate 12%Yield to maturity 10%Face value $1,000Percentage of face value paid back to the investor on maturity 100%Using the above data, calculatei. The flat price of the bondii. Accrued interestiii. Invoice price of the bond Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line. .
ces 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. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (ICO) Coupon 6.100 Coupon rate 7.190 ?? Maturity January 15, 2041 January 15, 2035 January 15, 2037 Last Price Last Yield 94.267 ?? ?? 6.16 94.805 6.98 Estimated $ Volume (000s) 57,369 48,948 43,009 What 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 decimal places, e.g., 32.16.
LO 5 Print 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 $2,000, and the current date is April 15, 2019. Company (Ticker) IOU (IOU) Coupon 7.70 Last Price Maturity Apr 15, 2039 93.030 a. Yield to maturity b. Current yield Last Yield ?? 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.) % 8.28 % EST Vol (000s) 107
Question 7 You are interested in buying one corporate bond and your broker has offered two corporate bonds for you to consider: 1. Bond A: paying quarterly coupons, with a maturity date of 1 January 2025, an annual coupon rate of 12% and a bond flat price of $90.0 2. Bond B: paying quarterly coupons, with a maturity date of 1 January 2035, an annual coupon rate of 15% and a bond flat price of $100.0 If the settlement date of both bonds is 1 January 2022, which of these two bonds represents the best investment opportunity? O Bond A O Bond B because its redemption value is higher than Bond A O Bond B O Both Bond A and Bond B as they are identical
3 To calculate the number of years until maturity, assume that it is currently January 15, 2022. All of the bonds have a $2,000 par value and pay semiannual coupons. Company (Ticker) Xenon, Incorporated (XIC) Kenny Corporation (KCC) Williams Company (WICO) Coupon rate Coupon 5.400 4.125 ?? % Maturity January 15, 2034 January 15, 2029 January 15, 2031 What 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 decimal places, e.g., 32.16. Prev Last Price Last Yield ?? 92.685 ?? 3.84 104.310 4.12 T Estimated $ Volume (000s) 57,362 48,941 43,802 5 of 15 Next >
Question two Using the following data, estimate the new bond prices of each of the 3 bonds if their yields (interest rates) increase by 0.3%. You should take into account both duration and convexity. Company Maturit Coupo Payment Duratio Yield y Date frequency BP Rio Tinto 2033 Severn Trent 2021 ΔΡ P 2058 n 3.561% Semi- annual 6.125% semi-annual 12.89 n 1.457% semi-annual 24.053 -×100 = (– D™ × Ay×100) + m 8.217 2 The percentage change in the bond price is estimated: 3.11% 78.935 Convexity 4.635% 229.86 4.773% 878.73 ×Convexity× (Ay)² × 100 Bond Price (TZS) 104.52 120.36 37.92
Exercise 1 (It's only one question)What is the price displayed in specialized newspapers for the following bonds March 19, 2020, (the semi-annual coupon)? Name of the society Coupon rate The price in % Yield to maturity Date of issue Due date TMS 8% ? 11% January 04,2005 January 04,2030 FLK 5% ? 14% April 16,2009 April 16,2024 BBL 12% ? 10% October 19,2012 October 19,2032
QUESTION 1 MaNga Inc. bonds have a current market price of $1,128.87 the bonds have an 9% annual coupon payment, a $1,000 face value, and 12 years left until maturity. The bonds may be called in 3 years at $1,125. What yield might investors expect to eam on these bonds? @7% 4.42% 7.16% 4.33%
ok ht nces You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.152 6.153 Maturity Month/Year May 35 May 38 May 44 Bid Asked Change 103.4586 103.5314 +.3274 104.4926 104.6383 +.4269 ?? +.5379 ?? Yield to maturity Ask Yield 5.959 ?? 3.991 In the above table, find the Treasury bond that matures in May 2038. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Problem Illustration 1: Valuing Bond Issue Consider a P1,000 par value bond issued by MERALCO with maturity date of 2026 and a stated coupon rate of 8.5%. On January 1, 2007, the bond had 20 years left to maturity, and the market's required yield to maturity for similar rated debt was 7.5%. Based on the market's required yield to maturity, what is the value of the bond? STEP 1: Timing and Amount of cash flows STEP 2: Determine the YTM discount rate STEP 3: Compute for the PV of cash flows 1 Bond Value = Interest (1 + YTM Market) + Principal (1 + YTM Market)" YTM Market