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) Xenon, Inc. (XIC) Kenny Corp. (CC) Williams Co (WCO) Coupon 6200 7200 Maturity Jan 15, 2028 Jan 15, 2027 Jan 15, 2034 94.263 EST SVO 000 57 370 49,949 3,810 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

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BOND - Microsoft Excel (Product Activation Failed) Add-Ins File Home Insert Page Layout Formulas Data Review View - 2x % Cut Σ AutoSum : A Calibri Dr General -11AA = = = B- A Wrap Text Merge Merge & Center - Center B I U SF $ -% % 4:0 .00 . Insert Delete Format Conditional Format Formatting as Table Styles Fill 2 Clear E Copy Paste Format Painter Clipboard GK128 Cell Styles Sort & Filter Editing Find & Select Font Alignment Number Cells GG GH GI G GK GL GM GN GO GP GOO 127 128 129 130 131 KENNY COUPON FACE VALUE INTEREST = 2000 X 7.200% = MATURITY YIELD PERIODS 7.200% SEMI ANNUAL 2000 144 11 5.30% 132 133 134 135 136 137 138 139 140 141 142 143 144 ► Rea PRICE 2313.70 [=PV(GK137/GK138, GK136*GK138,-GK135/GK138,-GK134)1 CURRENT YIELD 6.22% [GK135/GK140] [144/2313.70] Sheet2 AFN BANKING NOTE 51 53 CLEAN PRICE S10 BIDDING, UNDERWRITING EUAC AW LIFE LP, IP, MRP, INFLATION WARRANT refund S5 T O YIELD SPOT ferences S4 BO S6 OC 130% - ELEB * ENG 31-10-2019