ou find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 20 of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.674 6.208 Maturity Month/Year May 35 May 40 May 50 Bid 103.5579 104.5069 22 Asked 103.5457 +.3132 104.6526 ?? +.4401 +.5522 Change Ask Yield 6.179 ?? 4.211 a. In the above table, find the Treasury bond that matures in May 2050. 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 0588, 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.
ou find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 20 of the bonds have a par value of $1,000 and pay semiannual coupons. Rate ?? 5.674 6.208 Maturity Month/Year May 35 May 40 May 50 Bid 103.5579 104.5069 22 Asked 103.5457 +.3132 104.6526 ?? +.4401 +.5522 Change Ask Yield 6.179 ?? 4.211 a. In the above table, find the Treasury bond that matures in May 2050. 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 0588, 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.
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
??
5.674
6.208
Maturity
Month/Year
May 35
May 40
May 50
Bid
103.5579
104.5069
22
Asked
103.5457
104.6526
??
Change
+.3132
+.4401
+.5522
Ask Yield
6.179
22
4.211
a. In the above table, find the Treasury bond that matures in May 2050. 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 .0588, 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.
A
a. Asked price
b. Bid price
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