or enter web address dow shows what is correct and incorrect for the work you ha
ID: 2792970 • Letter: O
Question
or enter web address dow shows what is correct and incorrect for the work you have completed so far all of the work you have done so far is correct, y ou may not have completed everything value 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 S1,000 and the current date is April 15, 2016. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Company EST Voll (Tricken Coupon Maturty Last Price Last Yield EST Spread UST (000 477 10 1977 ou (IOU)69 Apr 15 2026 108.27 What is the yield to maturity of the bond? YTM 580 % What is the Equivalent Government Bond Yield? Bond yield 076 00% ! ole @ Type here to searchExplanation / Answer
use financial calculator
FV=1000
PV=-1000*108.27%=-1082.70
N=10*2=20 semi annual periods
PMT=1000*6.9%/2=34.5
Click CPT
Click 1/Y=2.8993% per semi annual
yield to maturity=2.8993%*2=5.80%
Equivalent government bond yield=(1+2.8993%)^2-1=5.88%
the above is the answer
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