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
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