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Bond Valuation

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?


Solution Preview

Ok. I used the financial calculator found at http://www.moneychimp.com/calculator/popup/calculator.htm?mode=calc_bondytm. You can also access the calculator from ...