Question
Suppose the following bond quotes for IOU Corporation appear in the financial page of today's 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 today's 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) | 5.1 | Apr 19, 2034 | 106.85 | ?? | 1,833 |
a. What is the yield to maturity (YTM) of the bond? percent.
b. What is the Current yield? percent.
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Behavioral Finance
Authors: Edwin Burton, Sunit N. Shah
1st Edition
111830019X, 978-1118300190
