ezto.mheducation.com BUSI2019FC M-Arzandeh F17- (2017FI Assignment 6 www.youtube
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ezto.mheducation.com BUSI2019FC M-Arzandeh F17- (2017FI Assignment 6 www.youtube.com | I Need It The Answer An Hour l Chegg Solved: Your company is expanding it.. + Finance I: BUS12019FC yousef bahayder Assignment 6 instructions I help Question 6 (of 7) Save & Exit | Submit 10.00 points 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. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) EST Vol Company (Ticker)Coupon Maturity Last Price Last Yield EST Spread UST (000s) IOU (IOU) 6.8 Apr 15, 2026 108.02 476 10 1,877 What is the yield to maturity of the bond? YTM What is the Equivalent Government Bond Yield? Bond yield References eBook & Resources Worksheet Learning Objective: 07-04 How bond prices are quoted.Explanation / Answer
use financial calculator
FV=1000
PV=-1000*108.02%=-1080.20
N=10*2=20 semi annual periods
PMT=1000*6.8%/2=34
Click CPT
Click 1/Y=2.8675% per semi annual
yield to maturity=2.8675%*2=5.74%
Equivalent government bond yield=(1+2.8675%)^2-1=5.82%
the above is the answer
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