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 (WICO) Coupon 6.100 7.190 22 Maturity January 15, 2041 January 15, 2035 January 15, 2037 Last Price Last Yield 94.267 ?? 94.805 ?? 6.16 6.98 Estimated $ Volume (000s) 57,369 48,948 43,809 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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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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 (WICO)
a. Price
b. Current yield
Coupon
6.100
7.190
22
$
Maturity
January 15, 2041
January 15, 2035
January 15, 2037
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.
1,936.10
6.41 %
Last Price Last Yield
94.267
22
??
6.16
94.805
6.98
Estimated $
Volume
(000s)
57,369
48,948
43,809
Transcribed Image Text: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 (WICO) a. Price b. Current yield Coupon 6.100 7.190 22 $ Maturity January 15, 2041 January 15, 2035 January 15, 2037 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. 1,936.10 6.41 % Last Price Last Yield 94.267 22 ?? 6.16 94.805 6.98 Estimated $ Volume (000s) 57,369 48,948 43,809
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