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 ?? 5.324 6.173 Maturity Month/Year May 38 May 43 May 53 a. Asked price Bid 103.5366 Asked 103.5488 104.4978 104.6435 ?? ?? Change +.3041 +.4317 +.5431 Ask Yield 6.039 ?? 4.071 a. In the above table, find the Treasury bond that matures in May 2053. 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 0538, 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 6-29 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 ?? 5.324 6.173 Maturity Month/Year May 38 May 43 May 53 a. Asked price Bid 103.5366 Asked 103.5488 104.4978 104.6435 ?? ?? Change +.3041 +.4317 +.5431 Ask Yield 6.039 ?? 4.071 a. In the above table, find the Treasury bond that matures in May 2053. 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 0538, 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.
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 16PROB
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