Problem 7-24 Using Bond Quotes (LO5)

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 $1,000 and the current date is April 15, 2016.(Round the final answers to 2 decimal places.)

Company (Ticker) Coupon. Maturity. Last Price. Last Yield. EST Spread. UST EST Vol (000s)

IOU (IOU). 7.2. Apr 15, 2026. 108.96. ?? 468. 10. 1,827

What is the yield to maturity of the bond?

YTM%

What is the Equivalent Government Bond Yield?

Bond yield%