Question
Suppose the following bond quote for IOU Corporation appears in the financial page of todays 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 todays newspaper. Assume the bond has a face value of $2,000, and the current date is April 15, 2019. |
| Company (Ticker) | Coupon | Maturity | Last Price | Last Yield | EST Vol (000s) |
| IOU (IOU) | 7.45 | Apr 15, 2034 | 92.945 | ?? | 97 |
| 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 | |
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Introduction To Finance
Authors: Lawrence J Gitman, Jeff Madura
1st Edition
0201635372, 9780201635379
