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Chrome File Edit View History Bookmarks People Window Help ' 100 Mil Thu 11:57 PM Hassan Alsaihati Q D Assignment Results G Home l Chegg.com Hassan × c o D ezto.mheducation.com/hm.tpx?todospostSubmissionview :: Apps UWM-, hotmail A ALEKS DI MathwayPEX Expedia CR E EagleRider Rentals AT&T; Pay Onlir at VIP C D wileyPLUSJeiJ Question 6 (of 6) Return To Assignment List O. Award: O out of 1.00 point You did not receive full credit for this question in a previous attempt Suppose the following bond quote for lOU 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 15 2016. Company (Ticker)Coupon OU (IOU) 9.85 Apr 15, 2023 91.545 Last Price LastEST Vo Yield (000s) 1,828 Maturity 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.) Yield to maturity 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.) Current yield 10.67 % eBook & Resources onds ua

Explanation / Answer

for yield to maturity use financial calculator

FV=1000 as the maturity par value of the bond

PV=-915.45 as current price

N=7 years

PMT=1000*9.85%=98.50

Click CPT

Click 1/Y=11.68% is the YTM (YIELD TO MATURITY)

Current yield=annual coupon income/current price

=(1000*9.85%)/915.45

=10.76%

the above is the answer

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