bond que Corporation appears in the financial page of today's newspaper. Assume the bone face value of $1,000, and the current date is April 19, 2022. Company (Ticker) IOU (100) Coupon Maturity 6.85 April 19, 2036 a Yield to maturity Current yield Estimated Last Price Last Yield Volume (0001) 92.741 77 73 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 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

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
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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 $1,000, and the current date is April 19, 2022
Company
(Ticker)
του (100)
Estimated
Coupon
Maturity. Last Price Last Yield Volume (000)
6.85 April 19, 2036 92.741
77
a. Yield to maturity
b. Current yield
73
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.
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 Company (Ticker) του (100) Estimated Coupon Maturity. Last Price Last Yield Volume (000) 6.85 April 19, 2036 92.741 77 a. Yield to maturity b. Current yield 73 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.
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