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 $2,000, and the current date is April 19, 2022. Company (Ticker) IOU (IOU) Coupon 7.45 Maturity April 19, 2039 a. What is the yield to maturity of the bond? Estimated 97 Last Price Last Yield Volume (000s) 92.945 ?? 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. a. Yield to maturity b. Current yield % %

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
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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 $2,000, and the current date is April 19, 2022.
Company
(Ticker)
IOU (IOU)
Coupon
7.45
Estimated
97
Maturity Last Price Last Yield Volume (000s)
April 19, 2039
??
a. What is the yield to maturity of the bond?
92.945
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.
a. Yield to maturity
b. Current yield
%
%
Transcribed Image Text: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 $2,000, and the current date is April 19, 2022. Company (Ticker) IOU (IOU) Coupon 7.45 Estimated 97 Maturity Last Price Last Yield Volume (000s) April 19, 2039 ?? a. What is the yield to maturity of the bond? 92.945 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. a. Yield to maturity b. Current yield % %
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