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Chrome File Edit View History Bookmarks People Window Help 98% i-_ Fri 12:34 AM Hassan Alsaihati Q ·E Mail-h-7up..s@hotmail.com × v e chrome File Edit View History × y D Assignment 9-GRADED Hassan . ezto.mheducation.com/hm.tpx :: Apps UWM-, hotmail A ALEKS DI Mathway PEX Expedia CR E EagleRider Rentals AT&T; Pay Onlir at VIP C D wileyPLUSJeiJ Question 8 (of 8) Save & Exit Submit value: 1.00 points You did not receive full credit for this question in a previous attempt 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 EST $ Vol (000's) 57,379 48.958 43,819 Xenon, Inc. (XIC) Kenny Corp. (KCC) Williams Co. (WICO) Company (Ticker) Coupon 7.100 7.290 Maturity Jan 15, 2037 Jan 15, 2036 Jan 15, 2043 Last Price 94.353 Last Yield 2? 5.48 7.18 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 $ 2433.32 6.0 % eBook &Resources;

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%

the above is the answer.I guess you did not get full reward because you put 6.0% instead of 5.99%, so use 5.99%.

the above are the answer.

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