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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, 2013.

Company
(Ticker)
Coupon Maturity Last
Price
Last
Yield
EST Vol
(000s)
IOU (IOU) 9.75 Apr 15, 2027 86.352 ?? 1,827
Requirement 1:

What is the yield to maturity of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Yield to maturity %
Requirement 2:

What is the current yield? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

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Deanna Hettinger
Deanna HettingerLv2
29 Sep 2019
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