Problem 6-1 Financial Pages (LO1) Consider the table given below to answer the following question. Maturity Coupon Bid Price Asked Price Chg Asked Yield to Maturity (%) 15-02-2020 1.375 98.3281 98.3438 − 0.0078 2.228 15-02-2021 2.25 99.5781 99.5938 0.0313 2.391 15-02-2025 7.625 130.6719 130.6875 0.1094 2.770 15-02-2029 5.25 121.8516 121.9141 0.2344 2.908 15-02-2036 4.5 120.9063 120.9688 0.5313 2.986 15-02-2041 4.75 127.2422 127.3047 0.6641 3.084 15-02-2048 3 97.2656 97.2969 0.7266 3.140 a. What is the current yield of the 2.25% 2021 maturity bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Problem 6-1 Financial Pages (LO1) Consider the table given below to answer the following question. Maturity Coupon Bid Price Asked Price Chg Asked Yield to Maturity (%) 15-02-2020 1.375 98.3281 98.3438 − 0.0078 2.228 15-02-2021 2.25 99.5781 99.5938 0.0313 2.391 15-02-2025 7.625 130.6719 130.6875 0.1094 2.770 15-02-2029 5.25 121.8516 121.9141 0.2344 2.908 15-02-2036 4.5 120.9063 120.9688 0.5313 2.986 15-02-2041 4.75 127.2422 127.3047 0.6641 3.084 15-02-2048 3 97.2656 97.2969 0.7266 3.140 a. What is the current yield of the 2.25% 2021 maturity bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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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Problem 6-1 Financial Pages (LO1)
Consider the table given below to answer the following question.
| Maturity | Coupon | Bid Price | Asked Price | Chg | Asked Yield to Maturity (%) |
||||||||||||||
| 15-02-2020 | 1.375 | 98.3281 | 98.3438 | − | 0.0078 | 2.228 | |||||||||||||
| 15-02-2021 | 2.25 | 99.5781 | 99.5938 | 0.0313 | 2.391 | ||||||||||||||
| 15-02-2025 | 7.625 | 130.6719 | 130.6875 | 0.1094 | 2.770 | ||||||||||||||
| 15-02-2029 | 5.25 | 121.8516 | 121.9141 | 0.2344 | 2.908 | ||||||||||||||
| 15-02-2036 | 4.5 | 120.9063 | 120.9688 | 0.5313 | 2.986 | ||||||||||||||
| 15-02-2041 | 4.75 | 127.2422 | 127.3047 | 0.6641 | 3.084 | ||||||||||||||
| 15-02-2048 | 3 | 97.2656 | 97.2969 | 0.7266 | 3.140 | ||||||||||||||
a. What is the current yield of the 2.25% 2021 maturity bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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