EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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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) Coupon
IOU (IOU)
5.30
Maturity
April 19, 2031
Last Price
91.645
Last Yield
??
Estimated Volume
(000s)
1,827
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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Transcribed Image Text:es 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) Coupon IOU (IOU) 5.30 Maturity April 19, 2031 Last Price 91.645 Last Yield ?? Estimated Volume (000s) 1,827 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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