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, it makes semiannual interest payments, and the current date is April 15, 2022.
Company (Ticker) IOU (IOU) Coupon 7.2 Maturity April 15, 2038 Last Price 103.36 Last Yield ?? EST Volume (000s) 1,832
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 13.70 %
b. Current yield 6.97 %