
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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 $2,000, and the current date is April 19, 2022.
Company
(Ticker)
IOU (IOU)
Coupon Maturity
7.60 April 19, 2042
a. Yield to maturity
b. Current yield
Estimated
Last Price Last Yield Volume (000s)
92.996
??
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.
%
%
103
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