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Answer is complete and correct. $ 1,329.34 $ 1,328.75 a. Asked price b. Bid price

Answer is complete and correct. $ 1,329.34 $ 1,328.75 a. Asked price b. Bid price

Essentials Of Investments
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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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 ?? 5.724 6.213 Maturity Month/Year May 36 May 41 May 51 Bid 103.5592 104.5082 ?? a. Asked price b. Bid price Asked 103.5470 104.6539 ?? Answer is complete and correct. a. In the above table, find the Treasury bond that matures in May 2051. What is the asked price of this bond in dollars? Note: 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 .0595, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. $ 1,329.34 $ 1,328.75 Change +.3145 +.4413 +.5535 Ask Yield 6.199 ?? 4.231
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 ?? 5.724 6.213 Maturity Month/Year May 36 May 41 May 51 Bid 103.5592 104.5082 ?? a. Asked price b. Bid price Asked 103.5470 104.6539 ?? Answer is complete and correct. a. In the above table, find the Treasury bond that matures in May 2051. What is the asked price of this bond in dollars? Note: 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 .0595, what is the bid price in dollars? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. $ 1,329.34 $ 1,328.75 Change +.3145 +.4413 +.5535 Ask Yield 6.199 ?? 4.231
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