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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,
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) | 5.3 | April 19, 2031 | 91.645 | ?? | 1.827 |
A. 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.
B. 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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