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, 2016.
[ Company (Ticker) = IOU (IOU) ]
[ Coupon = 8.0 ]
[ Maturity = Apr 15, 1929 ]
[ Last Price = 103.762 ]
[ Last Yield = [ ?? ]
[ EST Vol (000s) = 1,836 ]
What is the yield to maturity of the bond?
What is the current yield?
a). To find the YTM, we need to put the following values in the financial calculator: N =... View the full answer