Question

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 the Williams Co. bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate

Answer 1

B10 : x fix =PMT(B6,B4,B7,B1) А B 1 Face value (FV) 2,000 2 Number of compounding periods per year 3 Number of years to maturity - 22 Number of compounding periods till maturity 4. (NPER) 5 Yield to maturity 6.57% 6 Yield to maturity (RATE) 6.57% 7 Bond price (PV) $ (1,937.70) =-2000*96.885% 8 Interest payment (PMT) PMT(RATE,NPER,PV,FV) 9 10 Coupon payment (PMT) 125.97 11 Coupon rate [Coupon payment 12 Compoundings per year =$FV] 6.30%

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