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 today's newspaper. Assume the bond has a face value of $2,000 and the current date is April 19, 2018. Company EST Vol (Ticker) Coupon Maturity Last Price Last Yield (000s) IOU Apr 19, 6.7 2034 ?? 115.01 1,865 (IOU) a. 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.) b. 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.) a. YTM b. Current yield

Explanation / Answer

a).

YTM = 5.29%

b). Current Yield = 134/2330.2 = 5.83%

Input 16 -2,300.2 134 2,000 TVM N I/Y PV PMT FV Output 5.29

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