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. Estimated Volume Company (Ticker) IOU (IOU) Coupon 7.35 Maturity April 19, 2037 Last Price 92.911 Last Yield ?? (0005) 93 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
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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.
Estimated Volume
Company (Ticker)
IOU (IOU)
Coupon
7.35
Maturity
April 19, 2037
Last Price
92.911
Last Yield
??
(0005)
93
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
%
%
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. Estimated Volume Company (Ticker) IOU (IOU) Coupon 7.35 Maturity April 19, 2037 Last Price 92.911 Last Yield ?? (0005) 93 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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