Question:
Suppose the following bond quotes for IOU Corp. appear in the financial page of today's newspaper. Assume the bond has a value of $1000 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?
Comapany Coupon Maturity Last Last EST UST EST Vol
(Ticker) Price Yield Spread (000s)
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IOU(IOU) 8.4 April 15,2017 84.35 ?? 468 10 1,827
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