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Suppose the following bond quotes for IOU Corporation appear in the financial page of todays newspaper. Assume the bond has a face value of $2,000
Suppose the following bond quotes for IOU Corporation appear in the financial page of todays newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2018. |
Company (Ticker) | Coupon | Maturity | Last Price | Last Yield | EST Vol (000s) | ||||||||||||
IOU (IOU) | 6.4 | Apr 19, 2034 | 113.48 | ?? | 1,859 | ||||||||||||
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.) |
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