Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of $2,000, and the current date is April 15, 2019. Company (Ticker) IOU (IOU) Coupon 7.70 Maturity Apr 15, 2039 a. Yield to maturity b. Current yield Last Price 93.030 % 8.28 % Last Yield ?? a. What is the yield to maturity of the bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) EST Vol (000s) 107

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Suppose the following bond quote for IOU Corporation appears in the financial page of
today's newspaper. Assume the bond has a face value of $2,000, and the current date is
April 15, 2019.
Company
(Ticker)
IOU (IOU)
Coupon
7.70
Last
Price
Maturity
Apr 15, 2039 93.030
a. Yield to maturity
b. Current yield
Last
Yield
??
a. What is the yield to maturity of the bond? (Do not round intermediate calculations.
and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What is the current yield? (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.)
%
8.28 %
EST Vol
(000s)
107
Transcribed Image Text:LO 5 Print Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of $2,000, and the current date is April 15, 2019. Company (Ticker) IOU (IOU) Coupon 7.70 Last Price Maturity Apr 15, 2039 93.030 a. Yield to maturity b. Current yield Last Yield ?? a. What is the yield to maturity of the bond? (Do not round intermediate calculations. and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % 8.28 % EST Vol (000s) 107
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