Question

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) 6.300 Jan 15, 2029 94.273 ?? 57,371 Kenny Corp. (KCC) 7.210 Jan 15, 2028 ?? 5.32 48,950 Williams Co. (WICO) ?? Jan 15, 2035 94.825 7.02 43,811 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.) Price $ 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.) Current yield %

Answer #1

**(1)-Amount** **expect to pay for the Kenny Corp.
bond**

Price of the Bond = Present Value of the Coupon payments + Present Value of Face Value

Face Value = $2,000

Semiannual Coupon Amount = $72.10 [$2,1000 x 7.210% x ½]

Semiannual Yield to Maturity (YTM) = 2.66% [7.210% x ½]

Maturity Years = 24 Years [12 Years x 2]

Price of the Bond = Present Value of the Coupon payments + Present Value of Face Value

= $72.10[PVIFA 2.66%, 24 Years] + $2,000[PVIF 2.66%, 24 Years]

= [$72.10 x 17.5728] + [$2,000 x 0.53256]

= $1,267.00 + $1,065.13

= $2,332.13

**“Amount expect to pay for
the Kenny Corp. bond = $2,332.13”**

**(2)-Bond’s Current Yield**

Bond’s Current Yield = [Annual Coupon Amount / Bond’s Price] x 100

= [($2,000 x 7.210%) / $2,332.13] x 100

= [$144.20 / $2,332.13] x 100

= 6.18%

**“Bond’s Current Yield =
6.18%”**

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.
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)...

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)
6.700
Jan 15, 2036
94.313
??
57,375
Kenny Corp. (KCC)
7.250
Jan 15, 2035
??
5.40
48,954
Williams Co. (WICO)
??
Jan...

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) 5.900 Jan 15, 2025 94.233 ?? 57,367 Kenny Corp. (KCC) 7.170
Jan 15, 2022 ?? 6.12 48,946 Williams Co. (WICO) ?? Jan 15, 2028
96.785 6.37 43,807 What is the coupon rate for the...

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)
5.900
Jan 15, 2028
94.233
??
57,367
Kenny Corp. (KCC)
7.170
Jan 15, 2025
??
6.12
48,946
Williams Co. (WICO)
??
Jan...

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)
7.200
Jan 15, 2038
94.363
??
57,380
Kenny Corp. (KCC)
7.300
Jan 15,
2037
??
5.50
48,959
Williams Co. (WICO)
??
Jan 15,
2044
94.915
7.20
43,820
What price would you expect to pay...

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)
7.100
Jan 15,
2037
94.353
??
57,379
Kenny Corp.
(KCC)
7.290
Jan 15,
2036
??
5.48
48,958
Williams Co.
(WICO)
??
Jan 15,
2043
94.905
7.18
43,819
What price would you
expect to pay...

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) 7.000 Jan 15, 2039 94.343 ?? 57,378
Kenny Corp. (KCC) 7.280 Jan 15, 2038 ?? 5.46 48,957 Williams Co.
(WICO) ?? Jan 15, 2045 94.895 7.16 43,818
a.What price would you...

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) 7.200 Jan 15, 2038 94.363 ?? 57,380 Kenny Corp. (KCC) 7.300
Jan 15, 2037 ?? 5.50 48,959 Williams Co. (WICO) ?? Jan 15, 2044
94.915 7.20 43,820
What price would you expect to pay...

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)
7.300
Jan 15, 2042
94.373
??
57,381
Kenny Corp. (KCC)
7.310
Jan 15, 2041
??
5.52
48,960
Williams Co. (WICO)
??
Jan...

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)
5.600
Jan 15, 2025
94.203
??
57,364
Kenny Corp. (KCC)
7.140
Jan 15, 2024
??
5.18
48,943
Williams Co. (WICO)
??
Jan...

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