A US Treasury bond with exactly 5-years to maturity, paying 2% coupon semi- annually, sells at a price of 99.50 (per 100 par value). What is its yield-to- maturity? (pick the best answer) YTM ≤ 1.00% 1.00%

A US Treasury bond with exactly 5-years to maturity, paying 2% coupon semi- annually, sells at a price of 99.50 (per 100 par value). What is its yield-to- maturity? (pick the best answer) YTM ≤ 1.00% 1.00%

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

A US Treasury bond with exactly 5-years to maturity, paying 2% coupon semi-
annually, sells at a price of 99.50 (per 100 par value). What is its yield-to-
maturity? (pick the best answer)
OYTM ≤ 1.00%
1.00% <YTM ≤ 2.00%
2.00% <YTM ≤ 3.00%
3.00% <YTM

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