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 ?? 5.524 6.193 Maturity Month/Year May 32 May 37 May 47 a. Asked price b. Bid price Bid 103.5540 104.5030 27 Anked 103.5418 104.6487 77 Change +.3093 +.4365 +.5483 Ask Yield 6.119 27 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.

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
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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.
Transcribed Image Text: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.
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