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Interest Rate, YTM, Accrued Interest and Treasury Bond Yield

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Young Corporation has bonds on the market with 19 years to maturity, a YTM of 6.4 percent, and a current price of $1,519. The bonds make semiannual payments. The coupon rate on these bonds must be percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Using Bond Quotes
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, 2008. (Input answers as percents rounded to 2 decimal places, without the percent sign.)

Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s)
IOU (IOU) 7.425 Apr 15, 2016 873.1 ?? 1,827

The yield to maturity of the bond is percent.
The current yield is percent.

Nominal and Real Returns
An investment offers a 14.5 percent total return over the coming year. Bill Bernanke thinks the total real return on this investment will be only 5.5 percent. Therefore, Bill believes the inflation rate will be percent over the next year. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Accrued Interest
You purchase a bond with an invoice price of $1,070. The bond has a coupon rate of 4.6 percent, semiannual coupons and there are 2 months to the next coupon date. The clean price of the bond is $ . (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

In the table, find the Treasury bond that matures in May 2029. Assume that it is currently May 2008. What is the yield to maturity for this bond? (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Rate Maturity Mo/Yr Bid Asked Chg Ask Yld
?? May 15 106:13 106:17 +2 4.96
8.875 May 29 123:19 123:22 +4 ??
5.375 May 33 ?? ?? +3 6.48

The yield to maturity is percent.

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Solution Summary

The solution explains the calculation of bond coupon rate, yield, YTM, accrued interest and treasury bond yield

$2.19