To calculate the number of years until maturity, assume that it is currently Jan

Question

To calculate the number of years until maturity, assume that it is currently January 15, 2013. Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000s) 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, 2028 94.755 6.88 43,804 Requirement 1: What price would you expect to pay for the Kenny Corp. bond? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Price $ Requirement 2: What is the bonds current yield? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current yield %

Explanation / Answer

Que: Company Coupon Maturity Last Price Last Yield EST $ Vol(000$) Xenon 5.6 15.01.2022 94.203 ??? 57,364 Kenny 7.14 15.01.2019 ?? 6.06 48943 Williams ?? 15.01.2028 94.755 6.88 43804 Sol: Calculation of Yield Doller Price=1000*94.203=942.03 YTM=56+[(1000-942.03)/9]/1000+942.03/2 62.44/971.015 6.43% Price=71.4(PVAF 6.06%,6years)+1000(PVAF 6.06%,6th Year) 71.4*4.908+1000*.7026 1053.03

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