You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019 and the bonds have a par value of $2,000. Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Xenon, Inc. (XIC) 6.000 Jan 15, 2029 94.243 ?? 57,368 Kenny Corp. (KCC) 7.180 Jan 15, 2028 ?? 5.26 48,947 Williams Co. (WICO) ?? Jan 15, 2035 94.795 6.96 43,808 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). Bond's Market Value = PV of Coupon Payment + PV of Maturity Value
= [Periodic Coupon Payment * {(1 - (1 + r)^-n) / r}] + [Face Value / (1 + r)^n]
= [{7.18%*$2,000} * {(1 - (1 + 0.0526)^-10) / 0.0526}] + [$2,000 / {1 + 0.0526}^10]
= [$143.60 * {0.4011 / 0.04}] + [$2,000 / 1.6697]
= [$143.60 * 7.6252] + $1,197.83
= $1,094.97 + $1,197.83 = $2,292.81
b). Current Yield = Annual Coupon Payment / Current Bond Price
= [7.18%*$2,000] / $2,292.81 = $143.60 / $2,292.81 = 0.0626, or 6.26%
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019 and the bonds have a par value of $2,000. What price would you expect to pay for the Kenny Corp. bond? What is the bond’s current yield? You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019 and the bonds have a par value...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019 and the bonds have a par value of $2,000 EST $ Vol Company (Ticker) Xenon, Inc. (XIC) Kenny Corp. (KCC) Williams Co. (WICO) Last Last (000's) 57,375 48,954 43,815 Coupon 6.70 7.25 Maturity Jan 15, 2038 Jan 15, 2035 Jan 15, 2042 Price Yield 94.339 ?? 6.28 ?? ?? 94.865 7.10 What is the 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, 2019 and the bonds have a par value of $2,000. Company (Ticker) Coupon Xenon, Inc. (XIC) 6.70 Kenny Corp. (KCC) 7.25 Williams Co.(WICO) ?? Price Jan 15, 2038 Last Price 94.339 ?? 94.865 Maturity Jan 15, 2038 Jan 15, 2035 Jan 15, 2042 Last Yield ?? 6.28 7.10 EST $ Vol (000's) 57,375 48,954 43,815 What is the...
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. Last Price 94.183 Last Yield Company (Ticker) Coupon Maturity Xenon, Inc. (XIC) 5.400 Jan 15, 2023 Kenny Corp. (KCC) 7.125 Jan 15, 2022 Williams Co. ?? Jan 15, 2029 (WICO) EST $ Vol (000's) 57,362 48,941 43,802 5.14 6.85 ?? Ja 94.735 a. What price would...
you find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019 and the bonds have a par value of $2,000. Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Xenon, Inc. (XIC) 5.900 Jan 15, 2028 94.233 ?? 57,367 Kenny Corp. (KCC) 7.170 Jan 15, 2025 ?? 6.12 48,946 Williams Co. (WICO) ?? Jan 15, 2031 ...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2016. The bonds have a par value of $2,000. Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Xenon, Inc. (XIC) 6.500 Jan 15, 2031 94.293 ?? 57,373 Kenny Corp. (KCC) 7.230 Jan 15, 2028 ?? 6.24 48,952 Williams Co. (WICO) ?? Jan 15, 2034 96.845 6.49 43,813 What is the coupon rate for the...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019 and the bonds have a par value of $2,000. Last Price 94.213 Company (Ticker) Coupon Xenon, Inc. (XIC) 5.700 Kenny Corp. (KCC) 7150 Williams Co. (WICO) ?? Yield Maturity Jan 15, 2026 Jan 15, 2023 Jan 15, 2029 EST $ Vol (000's) 57,365 48.944 43,805 ?? 96.765 6.08 .33 6 What is the coupon rate for the...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019 and the bonds have a par value of $2,000. Company (Ticker) Coupon Xenon, Inc. (XIC) 6.900 Kenny Corp. (KCC) 7.270 Williams Co. (WICO) ?? Last Price 94.333 Maturity Jan 15, 2038 Jan 15, 2035 Jan 15, 2041 Last Yield ?? 6.32 6.57 EST $ Vol (000's) 57,377 48,956 43,817 ?? 96.885 What is the coupon rate for...
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 Xenon, Inc. (XIC) 6.600 Kenny Corp. (KCC) 7.240 Williams Co. (WICO) ?? Maturity Jan 15, 2035 Jan 15, 2032 Jan 15, 2038 Last Price 94.303 ?? 96.855 Last Yield ?? 6.26 6.51 EST $ Vol (000's) 57,374 48,953 43,814 What is the coupon...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2016. The bonds have a par value of $2,000. Company (Ticker) Xenon, Inc. (XIC) Kenny Corp. (KCC) Williams Co. (WICO) Coupon 6.800 7.260 ?? Maturity Jan 15, 2036 Jan 15, 2033 Jan 15, 2040 Last Price 94.351 ?? 94.875 Last Yield ?? 6.30 7.12 EST $ Vol (000's) 57,376 48,955 43,816 What is the yield to maturity for...