Suppose the following bond quotes for IOU Corporation appear in the financial pa

Question

Suppose the following bond quotes for IOU Corporation appear in the financial page of todays newspaper. Assume the bond has a face value of $1,000 and the current date is April 19, 2012. Company (Ticker)= IOU (IOU) Coupon=6.2 Maturity=Apr 19, 2028 Last Price=108.96 Last Yield=?? ESTvol (000's)=1,827 What is the yield to maturity of the bond? (Round your answer to 2 decimal places. (e.g., 32.16)) YTM % What is the current yield? (Round your answer to 2 decimal places. (e.g., 32.16)) Current yield

Explanation / Answer

Suppose the following bond quotes for IOU Corporation appear in the financial page of todays newspaper. Assume the bond has a face value of $1,000 and the current date is April 19, 2012. Company (Ticker)= IOU (IOU) Coupon=6.2 Maturity=Apr 19, 2028 Last Price=108.96 Last Yield=?? ESTvol (000's)=1,827 What is the yield to maturity of the bond? (Round your answer to 2 decimal places. (e.g., 32.16)) YTM % What is the current yield? (Round your answer to 2 decimal places. (e.g., 32.16)) Current yield

YTM = rate(nper,pmt,pv,fv)

YTM = rate(16,62,-1089.60,1000)

YTM = 5.35%

Current Yield = 62/1089.60

Current Yield = 5.69%

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