Answer 26 and 27

26. Using Bond Quotes LO2] 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, 2021. What is the yield to maturity of the bond? What is the current yield? Company (Ticker) IOU (OU) Last Yield Last Price Coupon 5.7 Maturity Apr 19, 2043 EST Vol (000s) 1,827 108.96 ?? 27. Bond Prices versus Yields [LO2] a. What is the relationship between the price of a bond and its YTM? b. Explain why some bonds sell at a premium over par value while other bonds sell at a discount. What do you know about the relationship between the coupon rate and the YTM for premium bonds? What about for discount bonds? For bonds selling at par value? c. What is the relationship between the current yield and YTM for premium bonds? For discount bonds? For bonds selling at par value