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 $1,000 and the current date is April 15, 2016. (Round the final answers to 2 decimal places.) Company (Ticker) Coupon IOU (IOU) 7.2 Maturity Apr 15, 2026 What is the yield to maturity of the bond? YTM Last Price 1,089.6 What is the Equivalent Government Bond Yield? Bond yield % Last Yield ?? EST Spread 468 UST 10 EST Vol (000s) 1,827
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 $1,000 and the current date is April 15, 2016. (Round the final answers to 2 decimal places.) Company (Ticker) Coupon IOU (IOU) 7.2 Maturity Apr 15, 2026 What is the yield to maturity of the bond? YTM Last Price 1,089.6 What is the Equivalent Government Bond Yield? Bond yield % Last Yield ?? EST Spread 468 UST 10 EST Vol (000s) 1,827
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
Problem 1PS
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Q.32.
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 $1,000 and the current date is April 15, 2016. (Round the final answers to 2 decimal places.)
Company (Ticker) Coupon
IOU (IOU)
7.2
Maturity
Apr 15, 2026
What is the yield to maturity of the bond?
YTM
%
Last Price
1,089.6
What is the Equivalent Government Bond Yield?
Bond yield
%
Last Yield
PP
EST Spread
468
UST
10
EST Vol
(000s)
1,827
my work
4
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