Suppose the following bond quote for IOU Corporation appears in the financial page of today?s newspaper. Assume
Question:
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 $1,000, and the current date is April 15, 2019. What is the yield to maturity of the bond? What is the current yield?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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The bond has 12years to maturity so the bond price equation is P 91645 3800PVIF...View the full answer
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Related Book For 
Essentials of Corporate Finance
ISBN: 978-1260013955
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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