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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,
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 7.40 Maturity Apr 15, 2033 Last Price 92.928 Last Yield ?? EST Vol (000s) 95 . 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.) a. 6.16 % Yield to maturity Current yield b. 5.96%
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