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Bllowing bond quotes for IOU Corporation appear in the financial page a today's newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2018. Company (Ticker) IOU (IOU) What Coupon 6.1 Maturity Apr 19, 2034 Last Price 111.95 Last Yield ?? EST Vol (000s) 1,853

Bllowing bond quotes for IOU Corporation appear in the financial page a today's newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2018. Company (Ticker) IOU (IOU) What Coupon 6.1 Maturity Apr 19, 2034 Last Price 111.95 Last Yield ?? EST Vol (000s) 1,853

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 (Ticker) IOU (IOU) Coupon 6.1 Maturity Apr 19, 2034 a. YTM b. Current yield Last Price Last Yield 111.95 ?? 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.) % % EST Vol (000s) 1,853
Transcribed Image Text: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) IOU (IOU) Coupon 6.1 Maturity Apr 19, 2034 a. YTM b. Current yield Last Price Last Yield 111.95 ?? 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.) % % EST Vol (000s) 1,853
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