Problem 6-28 Bond Yields [LO 2]You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2022. Allof the bonds have a par value of $1,000 and pay semiannual coupons.Rate??5.6246.283MaturityMonth/YearMay 30May 33May 39Bid Asked.Change Ask Yield103.4716 103.5444 +.3119 6.159104.5056 104.65132777774.191+4389+5509In the above table, find the Treasury bond that matures in May 2033. 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%

Problem 6-28 Bond Yields [LO 2] 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 17 5.624 6.203 Maturity Month/Year May 30 May 33 May 39 Asked 183.5444 Yield to maturity Bid 103.4716 184.5056 104.6513 77 77 Change Ask Yield +.3119 6.159 +4389 77 +5509 4.191 In the above table, find the Treasury bond that matures in May 2033. 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.

Problem 6-28 Bond Yields [LO 2] 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 17 5.624 6.203 Maturity Month/Year May 30 May 33 May 39 Asked 183.5444 Yield to maturity Bid 103.4716 184.5056 104.6513 77 77 Change Ask Yield +.3119 6.159 +4389 77 +5509 4.191 In the above table, find the Treasury bond that matures in May 2033. 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.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter5: The Cost Of Money (interest Rates)

Section: Chapter Questions

Problem 19PROB

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ok ht nces 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 ?? 6.152 6.153 Maturity Month/Year May 35 May 38 May 44 Bid Asked Change 103.4586 103.5314 +.3274 104.4926 104.6383 +.4269 ?? +.5379 ?? Yield to maturity Ask Yield 5.959 ?? 3.991 In the above table, find the Treasury bond that matures in May 2038. 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.
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Problem 6-29 Bond Prices [LO 2] 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 22 5.524 6.193 Maturity Month/Year May 32 May 37 May 47 Bid 103.5540 104.5030 22 a. Asked price b. Bid price Anked 103.5418 104.6487 22 Change Ask Yield 6.119 +.3093 +.4365 27 +.5483 4.151 a. In the above table, find the Treasury bond that matures in May 2047. 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 0566, 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.
Problem 6-30 Coupon Rates [LO 2] 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 ?? 5.901 6.128 Maturity Month/Year May 29 May 34 May 44 Coupon rate Bid Asked 103.6249 103.5371 104.4861 104.6318 ?? ?? In the above table, find the Treasury bond that matures in May 2029. What is the coupon rate for this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Change Ask Yield +.3209 2.189 ?? +.4209 +.5314 3.891 %
Problem 6-19 Interest Rate Risk (LO3) Consider three bonds with 5.00% coupon rates, all making annual coupon payments and all selling at face value. The short-term bond has a maturity of 4 years, the intermediate-term bond has a maturity of 8 years, and the long-term bond has a maturity of 30 years. ts a. What will be the price of the 4-year bond if its yield increases to 6.00%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will be the price of the 8-year bond if its yield increases to 6.00%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What will be the price of the 30-year bond if its yield increases to 6.00%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What will be the price of the 4-year bond if its yield decreases to 4.00%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. What will be the price of the 8-year bond if its yield…
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Question 4 The following is a list of prices today for bonds with different maturities. Face value is 100. Assume that the bonds pay their coupons annually, and that the YTMs in the table are annualized and compounded annually. Both coupon rate and yield to maturity (YTM) is in percent. Maturity (years) Price Coupon rate YTM 1 98.00 0 ?2 100 ? 5.00 3?9 6.00 Fill in the missing values in the table.What are the annualized spot rates for years 1 & 2 (r1 & r2)? Given r1 & r2, what is the price of a 2-year coupon bond with annual coupon rate of 7%? What is the duration of this bond?
Problem 6-28 Bond Yields [LO 2] 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 ?? 5.574 6.198 Maturity Month/Year May 29 May 32 May 38 Yield to maturity Bid Asked 103.4703 103.5431 104.5043 104.6500 ?? ?? Change +.3106 +.4377 +.5496 In the above table, find the Treasury bond that matures in May 2032. 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. % Ask Yield 6.139 ?? 4.171
Problem 6-19 Interest Rate Risk (LO3) Consider three bonds with 5.10% coupon rates, all making annual coupon payments and all selling at face value. The short- term bond has a maturity of 4 years, the intermediate-term bond has a maturity of 8 years, and the long-term bond has a maturity of 30 years. a. What will be the price of the 4-year bond if its yield increases to 6.10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will be the price of the 8-year bond if its yield increases to 6.10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What will be the price of the 30-year bond if its yield increases to 6.10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. What will be the price of the 4-year bond if its yield decreases to 4.10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. What will be the price of the 8-year bond if its yield…