Locate the Treasury bond in Figure 8.5 maturing in August 2045. Assume a par value of$20,000.a. What is its coupon rate? (Enter your answer as a percent rounded to 3 decimalplaces, e.g., 32.161.)b. What is its bid price in dollars? (Do not round intermediate calculations and roundyour answer to 2 decimal places, e.g., 32.16.)c. What was the previous day's asked price in dollars? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g., 32.16.)a. Coupon rateb. Bid pricec. Previous day's asked price%

Using this table as the sample table; MaturityCouponBidAskedChgAsked Yld5/15/20453…

Answered: Locate the Treasury bond in Figure 8.5…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Locate the Treasury bond in Figure 8.5 maturing in August 2045. Assume a par value of
$20,000.
a. What is its coupon rate? (Enter your answer as a percent rounded to 3 decimal
places, e.g., 32.161.)
b. What is its bid price in dollars? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
c. What was the previous day's asked price in dollars? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
a. Coupon rate
b. Bid price
c. Previous day's asked price
%

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