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 $1,000, and the current date is April 19, 2022. Estimated Volume Company (Ticker) Coupon IOU (IOU) 7.15 Maturity April 19, 2042 Last Price Last Yield 92.843 (000s) ?? 85 a. What is the yield to maturity of the bond? 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 % %
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 $1,000, and the current date is April 19, 2022. Estimated Volume Company (Ticker) Coupon IOU (IOU) 7.15 Maturity April 19, 2042 Last Price Last Yield 92.843 (000s) ?? 85 a. What is the yield to maturity of the bond? 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
Problem 1PS
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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 $1,000, and the current date is April 19, 2022.
Estimated Volume
7.15
Maturity
April 19, 2042
Last Price Last Yield
92.843
??
(000s)
85
Company (Ticker) Coupon
IOU (IOU)
a. What is the yield to maturity of the bond?
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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