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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
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 19, 2022. Company (Ticker) IOU (IOU) Estimated Coupon 7.20 Maturity April 19, 2044 Last Price Last Yield Volume (000s) 92.860 ?? 87 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. Answer is complete but not entirely correct. a. Yield to 7.75 % maturity b. Current yield 7.75 %
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Coupon payment will be 1000 720 72 No of years will be 2044 2022 22 Price will be 9286...Get Instant Access to Expert-Tailored Solutions
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