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 15, 2019 Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s) IOU (IOU) 7 2 Apr 15, 2032 103 368 1,832 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 ) 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 $1,000 and the current date is April 15, 2019 Coupon Last Price Last Yield Company (Ticker) IOU (IOU) Maturity Apr 15, 2032 EST Vol (000s) 1,832 7 2 103 368 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 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 11, 2024

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 15, 2019. Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s) IOU (IOU) 7.2 Apr 15, 2032 103.368 ?? 1,832 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.)

image text in transcribed

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 $1,000 and the current date is April 15, 2019. Coupon Last Price Last Yield Company (Ticker) IOU (IOU) Maturity Apr 15, 2032 EST Vol (000s) 1,832 7.2 103.368 ?? 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.)