Suppose the following bond quote for IOU 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, 2019.
Company
(Ticker)
ΙΟΥ (ΙΟU)
Coupon
7.60
Maturity
Apr 15, 2031
Last
Price
91.645
Last
Yield
??
EST Vol
(000s)
1,827
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. Yield to maturity
b. Current yield
%
%