Suppose the following bond quotes for IOU Corporation appear 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, 2021. Company (Ticker) Coupon 5.8 Maturity April 19, 2037 Last Price 110.42 Last Yield ?? TOU (IOU) EST volume (000s) 1,847 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.) a. YTM % b. Current yield 5.23 %

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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Bhupatbhai 

Suppose the following bond quotes for IOU Corporation appear 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, 2021.
Company
(Ticker)
Coupon
5.8
Maturity
April 19, 2037
Last Price
110.42
Last Yield
??
TOU (IOU)
EST volume
(000s)
1,847
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.)
a. YTM
%
b. Current yield
5.23 %
Transcribed Image Text:Suppose the following bond quotes for IOU Corporation appear 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, 2021. Company (Ticker) Coupon 5.8 Maturity April 19, 2037 Last Price 110.42 Last Yield ?? TOU (IOU) EST volume (000s) 1,847 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.) a. YTM % b. Current yield 5.23 %
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