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 ?? 5.774 6.218 Maturity Month/Year May 33 May 36 May 42 Bid Asked 103.4755 103.5483 104.5095 104.6552 ?? ?? Change +.3158 +.4425 +.5548 In the above table, find the Treasury bond that matures in May 2036. 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. Answer is complete but not entirely correct. Yield to maturity 4.98% Ask Yield 6.219 ?? 4.251
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 ?? 5.774 6.218 Maturity Month/Year May 33 May 36 May 42 Bid Asked 103.4755 103.5483 104.5095 104.6552 ?? ?? Change +.3158 +.4425 +.5548 In the above table, find the Treasury bond that matures in May 2036. 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. Answer is complete but not entirely correct. Yield to maturity 4.98% Ask Yield 6.219 ?? 4.251
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
??
5.774
6.218
Maturity
Month/Year
May 33
May 36
May 42
Bid
103.4755
Asked
103.5483
104.5095 104.6552
??
??
In the above table, find the Treasury bond that matures in May 2036. 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
Change Ask Yield
+.3158 6.219
??
+.4425
+.5548
4.251
Answer is complete but not entirely correct.
4.98%
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