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Chrome File Edit View History Bookmarks People Window Help * 11% " I Thu 7:27 PM Hassan Alsaihati Q D Assignment Results Hassan c o D ezto.mheducation.com/hm.tpx?todospostSubmissionview :: Apps UWM-, hotmail A ALEKS DI MathwayPEX Expedia CR E EagleRider Rentals AT&T; Pay Onlir at VIP C D wileyPLUSJeiJ Question 8 (of 8) Return To Assignment List Award: 0 out of 1.00 point 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. Last Yield 7? 5.48 7.18 EST S Vol (000's) 57,379 48,958 43,819 Company Ticker) Maturity Jan 15, 2037 Jan 15, 2036 Jan 15, 2043 Price 94.353 Xenon, Inc. (XIC) Kenny Corp. (KCC) Williams Co. (WICO) 7.100 7.290 7? 94.905 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 eBook &Resources; eBook ua

Explanation / Answer

price of the bond for Kenny corp

=(2000*7.290%)*((1-(1+5.48%)^(-20))/5.48%)+2000/(1+5.48%)^20

=2433.32

the above is the answer

current yield=(2000*7.290%)/2433.32=5.99% or 6.0%

the above is the answer

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