Question

You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Xenon, Inc. (XIC) 7.10 Jan 15, 2042 94.387 ?57,379 Kenny Corp. (KCC) 7.29 Jan 15, 2039 ?6.36 48,958 Williams Co. (WICO) ?Jan 15, 2046 94.905 7.18 43,819 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.)

Answer 1

The yield to maturity for the bond issued by Xenon, Inc. is 7.62%.

What is the yield to maturity for the bond issued by Xenon, Inc.?

The yield to maturity of a bond is the total return that would be earned if a bond is held to maturity.

The yield to maturity can be determined using a financial calculator:

• Coupon = 7.1% = 0.071 x 2000 = $142
• Number of years = 2042 - 2019 = 23
• Price =0. 94387 x 2000 = 1,887.74
• Full price = 2000

YTM = 7.62%

To learn more about yield to maturity, please check: brainly.com/question/5506528