a. In the above table, find the Treasury bond that matures in May 2044. What is the asked price of this bond in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the bid-ask spread for this bond is .0654, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 11MC
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You find the following Treasury bond quotes. To calculate the number of years until
maturity, assume that it is currently May 2019 and the bond has a par value of $1,000.
Maturity
Mo/Yr
Ask
Yld
Rate
Bid
Asked
103.5462 103.5340
Chg
??
May 29
5.999
104.4952 104.6409
+.4293
6.252
May 34
??
+.5405
6.163
May 44
??
??
4.031
a. In the above table, find the Treasury bond that matures in May 2044. What is the
asked price of this bond in dollars? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
b. If the bid-ask spread for this bond is .0654, what is the bid price in dollars? (Do not
round intermediate calculations and round your answer to 2 decimal places, e.g.,
32.16.)
a.
Asked price
b. Bid price
+.3015
Transcribed Image Text:You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000. Maturity Mo/Yr Ask Yld Rate Bid Asked 103.5462 103.5340 Chg ?? May 29 5.999 104.4952 104.6409 +.4293 6.252 May 34 ?? +.5405 6.163 May 44 ?? ?? 4.031 a. In the above table, find the Treasury bond that matures in May 2044. What is the asked price of this bond in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the bid-ask spread for this bond is .0654, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Asked price b. Bid price +.3015
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