Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

You find the following corporate bond quotes. To calculate the number of years u

ID: 2818421 • Letter: Y

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 6.000 7.180 Jan 15, 2025 Last Price 94.255 Last Yield EST $ Vol (000's) 57,368 48,947 43,808 Maturity Jan 15, 2028 Xenon, Inc. (XIC) Kenny Corp. (KCC) Williams Co (WICO) 6.14 6.96 29 Jan 15, 2032 94.795 What is the yield to maturity for the bond issued by Xenon, Inc.? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Yield to maturity [ 1%

Explanation / Answer

YTM

Using rate function in MS excel

rate(nper,pmt,pv,fv,type)

RATE(12,120,-1885.1,2000,0)

6.71%

present price = 2000*94.255%

1885.1

future value

2000

period to maturity

12

PMT = 2000*6%

120

YTM

Using rate function in MS excel

rate(nper,pmt,pv,fv,type)

RATE(12,120,-1885.1,2000,0)

6.71%

present price = 2000*94.255%

1885.1

future value

2000

period to maturity

12

PMT = 2000*6%

120

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote