5-3: Today is January 2, 2022, and investors expect the annual nomination risk-free interest rates in 2022 through 2024 to be: Year 2022 2023 2024 One-Year Rate (IRE) 2.2% 1.8% 2.9% What is the yield to maturity for Treasury bonds that mature at the end of (a) 2022 (a two-year bond) and (b) 2024 (a three-year bond)? Assume the bonds have no risks. (LO 5-3)|

Today is January 2, 2022, and investors expect the annual nominal risk-free interest rates in 2022 through 2024 to be:   Year One-Year Rate (rRF) 2022 2.5 % 2023 2.3   2024 3.3     Assume the bonds have no risks. What is the yield to maturity for Treasury bonds that mature at the end of 2023 (a two-year bond)? Round your answer to one decimal place.   % What is the yield to maturity for Treasury bonds that mature at the end of 2024 (a three-year bond)? Round your answer to one decimal place.   %

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Give typing answer with explanation and conclusion  1- Imagine the bond above displayed the following details: $10,000 Matures: January 31, 2030; Interest of $200 payable June 30 and December 31 of each year. Can you calculate the annual effective interest rate for this bond?   a)2%   b)4%   c)6%   d)One cannot tell.

mni.3

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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. Rate ?? 5.324 6.173 Maturity Mo/Yr May 29 a. Asked price b. Bid price May 34 May 44 Bid Asked 103.5488 103.5366 104.4978 104.6435 ?? Chg +.3041 +.4317 ?? +.5431 Ask Yld 6.039 ?? 4.071 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 .0538, what is the bid price in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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

pm.2

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. Asked Rate ??question mark 5.524 6.193 Maturity Month/Year May 34 May 37 May 43 Bid 103.4690 104.5030 ??question mark 103.5418 104.6487 ??question mark Change Ask Yield +.3093 6.119 +.4365 ?? +.5483 4.151 In the above table, find the Treasury bond that matures in May 2037. What is your yield to maturity if you buy this bond?