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thank you ! Suppose the following bond quotes for IOU Corporation appear in the financial page of today's newspaper. Assume the bond has a face
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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 EST Vol (000s) (Ticker) Coupon Maturity Last Price Last Yield IOU Apr 19, 5.3 107.87 ?? 1,837 (IOU) 2034 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.) a. YTM b. Current yield % Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 15 years to maturity, and a coupon rate of 6.1 percent paid annually. If the yield to maturity is 7.2 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price Step by Step Solution
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