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 $1,000 and the current date is April 15, 2016. (Round the final answers to 2 decimal places.) Company (Ticker) Coupon του του) 7.2 What is the yield to maturity of the bond? YTM Bond yield Maturity Apr 15, 2026 5.97 References Worksheet Last Price Last Yield 1,089.6 ?? What is the Equivalent Government Bond Yield? EST Spread UST EST Vol (000) 468 10 1,827 Learning Objective: 07-05 How bond prices are quoted.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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
$1,000 and the current date is April 15, 2016. (Round
the final answers to 2 decimal places.)
Company (Ticker) Coupon
IOU JOU)
7.2
YTM
Bond yield
Maturity
Apr 15, 2026
5.97%
References
Worksheet
Last Price
1,089.6
What is the yield to maturity of the bond?
Last Yield
??
EST Spread
468
What is the Equivalent Government Bond Yield?
Learning Objective: 07-05
How bond prices are quoted.
UST EST Vol (000s)
10
1,827
Transcribed Image Text: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 $1,000 and the current date is April 15, 2016. (Round the final answers to 2 decimal places.) Company (Ticker) Coupon IOU JOU) 7.2 YTM Bond yield Maturity Apr 15, 2026 5.97% References Worksheet Last Price 1,089.6 What is the yield to maturity of the bond? Last Yield ?? EST Spread 468 What is the Equivalent Government Bond Yield? Learning Objective: 07-05 How bond prices are quoted. UST EST Vol (000s) 10 1,827
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