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 15, 2019. Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s) IOU (IOU) 7.0 Apr 15, 2032 104.267 ? ? 1,841 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.)
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 15, 2019. Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s) IOU (IOU) 7.0 Apr 15, 2032 104.267 ? ? 1,841 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.)
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 15, 2019. Company (Ticker)
Coupon Maturity Last Price Last Yield EST Vol (000s) IOU (IOU) 7.0 Apr
15, 2032 104.267 ? ? 1,841 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.)
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