You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.002 6.138 Maturity Month/Year Bid May 32 May 35 May 41 103.4547 104.4887 ?? Asked 103.5275 104.6344 ?? Change +.3235 +.4233 +.5340 Ask Yield 5.899 ?? 3.931 In the above table, find the Treasury bond that matures in May 2035. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Yield to maturity 5.76 %
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 6.002 6.138 Maturity Month/Year Bid May 32 May 35 May 41 103.4547 104.4887 ?? Asked 103.5275 104.6344 ?? Change +.3235 +.4233 +.5340 Ask Yield 5.899 ?? 3.931 In the above table, find the Treasury bond that matures in May 2035. What is your yield to maturity if you buy this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Yield to maturity 5.76 %
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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Transcribed Image Text:You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. All
of the bonds have a par value of $1,000 and pay semiannual coupons.
Rate
??
6.002
6.138
Maturity
Month/Year
Bid
Asked
May 32
103.4547
103.5275
May 35
May 41
104.4887
??
104.6344
??
Change
+.3235
+.4233
+.5340
Ask Yield
5.899
??
3.931
In the above table, find the Treasury bond that matures in May 2035. What is your yield to maturity if you buy this bond?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Yield to maturity
5.76 %
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