Question

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	Last Price	Last Yield	EST $ Vol (000’s)
Xenon, Inc. (XIC)	6.300	Jan 15, 2032	94.273	??	57,371
Kenny Corp. (KCC)	7.210	Jan 15, 2031	??	5.32	48,950
Williams Co. (WICO)	??	Jan 15, 2038	94.825	7.02	43,811

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.)

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -