ou 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 77 6.052 6.143 Maturity Month/Year May 33 May 36 May 42 Anked Bid 103.4560 103.5288 104.4900 104.6357 77 77 Change Ask Yield +.3248 5.919 27 +.4245 +.5353 3.951 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 %
ou 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 77 6.052 6.143 Maturity Month/Year May 33 May 36 May 42 Anked Bid 103.4560 103.5288 104.4900 104.6357 77 77 Change Ask Yield +.3248 5.919 27 +.4245 +.5353 3.951 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 %
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
H9994.
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
27
6.052
6.143
Maturity
Month/Year
May 33
May 36
May 42
Bid
Asked
103.4560 103.5288
104.4900
104.63571
77
77
Yield to maturity
Change
+.3248
+.4245
+.5353
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.
%
Ank Yield
5.919
22
3.951
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