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.
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.
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 16P
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