Question: Using Bond Quotes Suppose the following bond quotes for IOU Corporation appear in the financial page of today??s newspaper. Assume the bond has a face
Using Bond Quotes 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, 2007. What is the yield to maturity of the bond? What is the current yield? What is the yield to maturity on a comparable U.S. Treasury issue?

6.500 May 13n May 13 May 13 5.28 - 13 106:10 106:12 8.250 - 3 - 15 103:16 5.24 103:14 134:25 5.32 12.000 134:31
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The bond has 10 years to maturity so the bond price equation is P 84350 42P... View full answer
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