Suppose the following bond quotes for IOU Corporation appear in the financial page of today’s newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2018.   Company (Ticker)   Coupon   Maturity   Last Price   Last Yield   EST Vol (000s)     IOU (IOU)     6.3     Apr 19, 2034     112.97       ??     1,857       a. What is the yield to maturity of the bond

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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Suppose the following bond quotes for IOU Corporation appear in the financial page of today’s newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2018.

 

Company (Ticker)   Coupon   Maturity   Last Price   Last Yield   EST Vol (000s)  
  IOU (IOU)     6.3     Apr 19, 2034     112.97       ??     1,857  
 

 

a.

What is the yield to maturity of the bond?

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