Question
In: Finance
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
| 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.) |
Solutions
Expert Solution
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
jeff jeffy answered 2 years agoRelated Solutions
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the
number of years until maturity, assume that it is currently January
15, 2016. The bonds have a par value of $2,000.
Company
(Ticker)
Coupon
Maturity
Last
Price
Last
Yield
EST $
Vol
(000’s)
Xenon, Inc.
(XIC)
6.200
Jan 15, 2030
94.279
??
57,370
Kenny Corp. (KCC)
7.200
Jan 15,
2027
??
6.18
48,949
Williams Co. (WICO)
??
Jan 15,
2034
94.815
7.00
43,810
What is the yield to maturity for...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the
number of years until maturity, assume that it is currently January
15, 2016. The bonds have a par value of $2,000.
Company
(Ticker)
Coupon
Maturity
Last
Price
Last
Yield
EST $
Vol
(000’s)
Xenon, Inc. (XIC)
5.600
Jan 15,
2022
94.203
??
57,364
Kenny Corp.
(KCC)
7.140
Jan 15,
2019
??
6.06
48,943
Williams Co.
(WICO)
??
Jan 15,
2025
96.755
6.31
43,804
What is the coupon rate for the...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
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)
6.00
Jan 15, 2031
94.255
??
57,368
Kenny Corp. (KCC)
7.18
Jan 15, 2028
??
6.14
48,947
Williams Co. (WICO)
??
Jan...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the
number of years until maturity, assume that it is currently January
15, 2016. The bonds have a par value of $2,000.
Company
(Ticker)
Coupon
Maturity
Last
Price
Last
Yield
EST $ Vol
(000’s)
Xenon, Inc. (XIC)
6.800
Jan 15, 2034
94.323
??
57,376
Kenny Corp. (KCC)
7.260
Jan 15, 2033
??
5.42
48,955
Williams Co. (WICO)
??
Jan 15, 2040
94.875
7.12
43,816
What price would you expect to pay...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the
number of years until maturity, assume that it is currently January
15, 2016. The bonds have a par value of $2,000.
Company
(Ticker)
Coupon
Maturity
Last
Price
Last
Yield
EST $ Vol
(000’s)
Xenon, Inc. (XIC)
6.900
Jan 15, 2035
94.333
??
57,377
Kenny Corp. (KCC)
7.270
Jan 15, 2034
??
5.44
48,956
Williams Co. (WICO)
??
Jan 15, 2041
94.885
7.14
43,817
What price would you expect to pay...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the
number of years until maturity, assume that it is currently January
15, 2016. The bonds have a par value of $2,000. Company (Ticker)
Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Xenon, Inc.
(XIC) 6.600 Jan 15, 2032 94.303 ?? 57,374 Kenny Corp. (KCC) 7.240
Jan 15, 2029 ?? 6.26 48,953 Williams Co. (WICO) ?? Jan 15, 2035
96.855 6.51 43,814 What is the coupon rate for the...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the
number of years until maturity, assume that it is currently January
15, 2016. The bonds have a par value of $2,000.
Xenon Inc. has Coupon: 5.400, Maturity: Jan. 15, 2020, Last
Price: 94.183, Last Yield: ??, EST $ Vol (000s) 57,362.
Kenny Corp. has Coupon: 7.125, Maturity: Jan. 15, 2019, Last
Price: ??, Last Yield: 5.14, EST $ Vol (000s) 48,941.
Williams Co. has Coupon: ??, Maturity: Jan. 15, 2026,...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the
number of years until maturity, assume that it is currently January
15, 2016. The bonds have a par value of $2,000.
Company
(Ticker)
Coupon
Maturity
Last
Price
Last
Yield
EST $
Vol
(000’s)
Xenon, Inc. (XIC)
6.600
Jan 15, 2032
94.303
??
57,374
Kenny Corp.
(KCC)
7.240
Jan 15,
2031
??
5.38
48,953
Williams Co.
(WICO)
??
Jan 15,
2038
94.855
7.08
43,814
What price would you expect to pay...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the
number of years until maturity, assume that it is currently January
15, 2016. The bonds have a par value of $2,000. Company (Ticker)
Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Xenon, Inc.
(XIC) 6.600 Jan 15, 2032 94.303 ?? 57,374 Kenny Corp. (KCC) 7.240
Jan 15, 2031 ?? 5.38 48,953 Williams Co. (WICO) ?? Jan 15, 2038
94.855 7.08 43,814
What price would you expect to pay...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the
number of years until maturity, assume that it is currently January
15, 2016. The bonds have a par value of $2,000. Company (Ticker)
Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Xenon, Inc.
(XIC) 6.100 Jan 15, 2027 94.253 ?? 57,369 Kenny Corp. (KCC) 7.190
Jan 15, 2026 ?? 5.28 48,948 Williams Co. (WICO) ?? Jan 15, 2033
94.805 6.98 43,809 What price would you expect to pay...
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