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)	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 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

Note: It is considered that the bond pays semi-annual coupon payments.