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Problem 6-25 Using Bond Quotes [LO 2] Suppose the following bond quote for IOU Corporation appears in the financial page of todays newspaper. Assume the
Problem 6-25 Using Bond Quotes [LO 2]
Suppose the following bond quote for IOU Corporation appears in the financial page of todays newspaper. Assume the bond has a face value of $1,000, and the current date is April 19, 2022.
| Company (Ticker) | Coupon | Maturity | Last Price | Last Yield | Estimated Volume (000s) |
|---|---|---|---|---|---|
| IOU (IOU) | 7.20 | April 19, 2044 | 92.860 | ?? | 87 |
What is the yield to maturity of the bond?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
What is the current yield?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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