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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, 2015.
What is the yield to maturity of the bond? What is the current yield?Company (Ticker)
CouponMaturity Last Price Last Yield EST Vol (000s)IOU (IOU) 5.7Apr 19,
2028 108.96 ?? 1,827
Solution

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Suppose the following bond quotes for IOU Corporation appear in the .pdf

  • 1. 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, 2015. What is the yield to maturity of the bond? What is the current yield?Company (Ticker) CouponMaturity Last Price Last Yield EST Vol (000s)IOU (IOU) 5.7Apr 19, 2028 108.96 ?? 1,827 Solution