Question

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 (OU) Last Price 91.595 Last Yeld EST Vel (000s) 1,833 Coupon 10.10 Malunity Apr 15, 2028 What is the yield to maturity of the bond? (Do not round intermediate caloulations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Yield to matunty % What is the curent yield? (Do not round intermediate calculations and enter your anewer as a percent rourded to 2 decimal places, e.g, 32.16) Curent yield

Answer 1

C9 - X fix =RATE(C7,C4,C5,C1)*C3 A в A Face value (FV) 1,000 2 10.10% 3 4 B Coupon rate Number of compounding periods per C year AxB/C Interest per period (PMT) Bond price (PV) DNumber of years to maturity Number of compounding periods till DxC maturity (NPER) Yield to maturity (YTM) Yield to maturity (YTM) 101 (915.95) | 12 RATE(NPER,PMT,PV,FV)x1 11.42% Current yield Current yield Bond annual coupons:Bond price 11.03%

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