2 You find the following corporate bond quotes. To calculate the number of years untilmaturity, assume that it is currently January 15, 2019. The bonds have a par value of$2,000 and semiannual coupons.LastCompany(Ticker)Xenon, Inc. (XIC)Kenny Corp. (KCC)Williams Co. (WICO)EST $ Vol(000's)57,36348,94243,803LastCoupon5.50MaturityJan 15, 2026Jan 15, 2023Jan 15, 2030PriceYield??6.046.8694.195??7.13??94.745What is the yield to maturity for the bond issued by Xenon, Inc.? (Do not roundintermediate calculations and enter your answer as a percent rounded to 2 decimalplaces, e.g., 32.16.)Yield to maturity%

Par Value of bond = $2000 Current Price = 94.195%*$2000 = $1885.10 Annual Coupon Rate = 5.5% Semi…

Answered: You find the following corporate bond…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...

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Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual coupon (payable June 30 and December 31) on January 1, 2018, when the market rate of interest was 10%. Were the bonds issued at a discount or premium? Assuming the bonds sold at 92.288, what was the sales price of the bonds?
On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?
Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 15-year straight debt with a 7% coupon paid annually, also trading for $1,000. What is the implied value of the warrants attached to each bond?
On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.
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 Maturity LastPrice LastYield EST $ Vol(000’s) Xenon, Inc. (XIC) 6.600 Jan 15, 2035 94.303 ?? 57,374 Kenny Corp. (KCC) 7.240 Jan 15, 2034 ?? 5.38 48,953 Williams Co. (WICO) ?? Jan 15, 2041 94.855 7.08 43,814 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.)
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 $2,000 and semiannual coupons. \table[[Company (Ticker),Coupon,Maturity,Last Price,Last Yield,\table[[Estimated],[$ Volume],[(000s)]]],[Xenon, Incorporated (XIC),6.60,January 15, 2045,94.327,??,57,374],[Kenny Corporation (KCC),7.24,January 15, 2039,??,6.26,48,953],[Williams Company (WIC0),??,January 15, 2041,94.855,7.08,43,814]] 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. Company (Ticker) Coupon Maturity Last Price Last Yield Estimated $ Volume (000s) Xenon, Incorporated (XIC) 5.700 January 15, 2037 94.219 ?? 57,365 Kenny Corporation (KCC) 7.150 January 15, 2031 ?? 6.08 48,944 Williams Company (WICO) ?? January 15, 2033 94.765 6.90 43,805 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. 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.
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) Coupon Maturity Last Price Last Yield Estimated $ Volume (000s) Xenon, Incorporated (XIC) 6.500 January 15, 2045 94.315 ?? 57,373 Kenny Corporation (KCC) 7.230 January 15, 2039 ?? 6.24 48,952 Williams Company (WICO) ?? January 15, 2041 94.845 7.06 43,813 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.
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 Xenon, Incorporated (XIC) Kenny Corporation (XCC) Williams Company (WICO) Coupon 6.70 7.25 Maturity January 15, 2044 January 15, 2038 January 15, 2040 Estimated Price Last Yield ) 94.33957,375 6.28 48,954 94.865 7.1043,815 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 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 $2,000 and semiannual coupons. \table[[.,,,,,\table[[Estimated],[$ Volume]]],[Company (Ticker),Coupon,Maturity,Last Price,Last Yield,(000s)
On January 1, 2021, a company issued an 8-year bond with a coupon rate of 15% and a par value of $ 1,750 that pays annual interest.Calculate the value of the bond based on the information provided with a required yield of 14%.According to the information obtained, is the bond sold at a discount or with a guarantee premium, and what is that value?
On March 13, 2030, you purchase a $1000 par value corporate bond that has a 12% and makes semiannual payments. The bond last paid a coupon on February 15, 2030 and is due to pay its next coupon on August 15, 2030. Assume that the bond’s day-count convention is the standard one for corporate bonds and note that 2030 is not a leap year. What is the accrued interest on this bond?

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